The minimum wage is an example of a
A)price floor.
B)price ceiling.
C)market equilibrium.
D)restriction on quantity.
E)price elasticity.

Question

Quizplus · Accepted Answer

The minimum wage is a price floor because it sets a minimum price that employers must pay for labor. It prevents wages from falling below a certain level, which can help improve the standard of living for low-wage workers, but it can also lead to job losses and lower economic efficiency.

The Minimum Wage Is an Example of a