The correct answer is C. a surplus.

Here's why:

A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, commodity, or service. A price floor must be higher than the equilibrium price in order to be effective.

The minimum wage is an example of a price floor because it is a limit imposed by the government on how low a wage or salary can be paid to workers.

When a price floor is set above the equilibrium level for a particular good or service, this results in a surplus of that good or service. In the context of minimum wage laws, this surplus is manifested as a surplus of labor, or in other words, unemployment.

This is because at the higher wage rate (set by the minimum wage law), the quantity of labor supplied by workers exceeds the quantity of labor demanded by employers. Hence, there is a surplus of labor in the market.

Question

The correct answer is C. a surplus.

Here's why:

A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, commodity, or service. A price floor must be higher than the equilibrium price in order to be effective.

The minimum wage is an example of a price floor because it is a limit imposed by the government on how low a wage or salary can be paid to workers.

When a price floor is set above the equilibrium level for a particular good or service, this results in a surplus of that good or service. In the context of minimum wage laws, this surplus is manifested as a surplus of labor, or in other words, unemployment.

This is because at the higher wage rate (set by the minimum wage law), the quantity of labor supplied by workers exceeds the quantity of labor demanded by employers. Hence, there is a surplus of labor in the market.

Knowee AI · Accepted Answer

The correct answer is C. a surplus.

Here's why:

A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, commodity, or service. A price floor must be higher than the equilibrium price in order to be effective.

The minimum wage is an example of a price floor because it is a limit imposed by the government on how low a wage or salary can be paid to workers.

When a price floor is set above the equilibrium level for a particular good or service, this results in a surplus of that good or service. In the context of minimum wage laws, this surplus is manifested as a surplus of labor, or in other words, unemployment.

This is because at the higher wage rate (set by the minimum wage law), the quantity of labor supplied by workers exceeds the quantity of labor demanded by employers. Hence, there is a surplus of labor in the market.

Minimum wage is an example of a price floor. If minimum wage laws are enforced, there is ___in the market.A.balanceB.efficiencyC.a surplusD.equilibriumE.a shortage

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