As given in the diagram, If the government sets the wages at a minimum at point B then the issue of a shortage of workers will arise. Thus, option A is correct.
What do you mean by minimum wages?
According to the law of the country, the lowest amount paid to any worker per hour without signing any agreement is considered as minimum wage.
If the government sets the minimum wages then they face a shortage of workers in the country resulting in inflation. There will be unemployment in the market due to the availability of fewer jobs and minimum wages.
Therefore, option A shortage of workers will arise if a minimum wage policy is established.
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