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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.
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Is a price floor a maximum or minimum price?
Minimum price Think floor is the bottom which is the minimum. Think ceiling is the top which is the maximum.
How is a price floor different from a price ceiling?
Price floor is a minimum and price ceiling is a maximum.
What is the difference between price ceiling and price floor?
price ceiling: A legally determined maximum price that sellers may charge.price floor: A legally determined minimum price that sellers may receive.
A minimum price for a good or service?
price floor
What is a minimum price for a good or service?
price floor
Is a price floor a maximum or minimum price?
Minimum price Think floor is the bottom which is the minimum. Think ceiling is the top which is the maximum.
How is a price floor different from a price ceiling?
Price floor is a minimum and price ceiling is a maximum.
How is floor price different from a price ceiling?
Price floor is a minimum and price ceiling is a maximum.
What is the difference between price ceiling and price floor?
price ceiling: A legally determined maximum price that sellers may charge.price floor: A legally determined minimum price that sellers may receive.
A minimum price for a good or service?
price floor
What is a minimum price for a good or service?
price floor
What is the term for the minimum price allowed by law?
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
Minimum wage is an example of?
a price floor.
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.
Is minimum wage a price floor?
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.
The minimum wage is an example of?
The minimum wage is an excellent example of a price floor
