The minimum wage is an example of a
A) price door.
B) price wall.
C) price floor.
D) price ceiling.

Question

Quizplus · Accepted Answer

The minimum wage is a government-imposed legal minimum price that employers must pay for labor, and it creates a price floor in the labor market. This means that employers cannot pay their workers less than the minimum wage, which can help to prevent them from exploiting workers or engaging in price discrimination based on gender, race, or other factors. However, a price floor can also lead to unintended consequences, such as increased unemployment or reduced hours for low-skilled workers who cannot produce enough value to justify the higher wage.

The Minimum Wage Is an Example of a