Which of the following is a correct statement about a minimum wage law?
A) It reduces costs for employers.
B) It ensures that all who want a job can get a job with a high enough wage.
C) It causes prices to rise as producers pay more for labor.
D) It is a price ceiling law that makes wages higher than the market equilibrium price.
E) It is a price floor law that forces wages to be lower than the market equilibrium price.

Question

Quizplus · Accepted Answer

A minimum wage law requires employers to pay a certain minimum amount to their workers, which increases the cost of labor. In order to offset this increased cost, producers may need to increase the prices of their goods or services, leading to higher prices for consumers.

Which of the Following Is a Correct Statement About a Minimum