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A minimum wage could be considered a price floor because it sets a wage floor on the price of labour. Since labour is an important factor of production, and price reflects the cost of production, then higher wages correspond to higher prices if there are no productivity gains.
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The minimum wage is an example of?
The minimum wage is an excellent example of a price floor
Give an example of a price floor and a price ceiling and the purpose of the controls?
an example of a price floor is the minimum wage
Markets with a ceiling price and floor price?
An example of a ceiling would be rent controlled apartments. A floor would be minimum wage.
Is minimum wage a price floor or ceiling?
Price floor- Minimum wage, if above the market equilibrium then unemployment Price ceiling- rent control, so more people are able to live comfortably. but this can be negative when the too high of price is confused with the too low of supply.
What is the relationship between price floor and minimum wage?
A price floor is a government-imposed lower limit on the price of a good or service, while minimum wage is a specific type of price floor set for labor. By establishing a minimum wage, the government ensures that workers receive a baseline level of compensation for their labor. If the minimum wage is set above the equilibrium wage, it can lead to a surplus of labor, meaning higher unemployment, as employers may hire fewer workers at the higher wage. Thus, both concepts aim to protect certain economic interests but can have unintended consequences in the labor market.
The minimum wage is an example of?
The minimum wage is an excellent example of a price floor
Minimum wage is an example of?
a price floor.
In macroeconomics is the minimum wage a price floor?
Yes
When the government sets a price floor on earnings it is called what?
Minimum wage.
An example of price floor?
A price floor is government imposed limit on how low a price can be charged for a product or service. An example of a price floor in the US are minimum wage laws. The government has set the minimum wage that a company can pay an employee.
Give an example of a price floor and a price ceiling and the purpose of the controls?
an example of a price floor is the minimum wage
Markets with a ceiling price and floor price?
An example of a ceiling would be rent controlled apartments. A floor would be minimum wage.
An example of a price floor?
minimum wage laws, laws specifying the lowest wage a company can pay an employee
Is minimum wage a price floor or ceiling?
Price floor- Minimum wage, if above the market equilibrium then unemployment Price ceiling- rent control, so more people are able to live comfortably. but this can be negative when the too high of price is confused with the too low of supply.
What is the relationship between price floor and minimum wage?
A price floor is a government-imposed lower limit on the price of a good or service, while minimum wage is a specific type of price floor set for labor. By establishing a minimum wage, the government ensures that workers receive a baseline level of compensation for their labor. If the minimum wage is set above the equilibrium wage, it can lead to a surplus of labor, meaning higher unemployment, as employers may hire fewer workers at the higher wage. Thus, both concepts aim to protect certain economic interests but can have unintended consequences in the labor market.
What problem can a price floor cause?
One form of a price floor is minimum wage. Minimum wage is a really good thing but it also has a bad side. That is if the minimum wage is set above the market equilibrium wage rate, the result is a decrease in employment.
How does the minimum wage being a price floor cause a surplus of workers looking for jobs?
Because some employers are unwilling or unable to afford to pay the minimum wage and therefore do not hire and reduce the unemployment line.
