A minimum wage is an example of a
A) price ceiling.
B) price floor.
C) black market.
D) market clearing price.

Name: A minimum wage is an example of a A) price ceiling. B) price floor. C) black market. D) market clearing price.
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Question

Quizplus · Accepted Answer

A minimum wage sets a legal minimum price for labor, meaning that employers cannot pay workers less than the minimum wage. This creates a price floor for labor, as wages cannot fall below the minimum wage.

A Minimum Wage Is an Example of a