The minimum wage is an example of a price floor in the labor market.

Name: The minimum wage is an example of a price floor in the labor market.
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The minimum wage sets a legal minimum price for labor, which is an example of a price floor. A price floor is a government-imposed limit on the lowest price that can be charged for a good or service. It is typically set above the equilibrium price, which can create an excess supply of labor, resulting in unemployment.

The Minimum Wage Is an Example of a Price Floor