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Question
Why is minimum wage a price floor?
Why is minimum wage a price floor?
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Solution
The minimum wage is considered a price floor because it allows suppliers of service (laborers) to provide their services within a decided rate even when the demanders (employers) are willing to hire them for a much lesser price.
Also read:
The minimum wage is considered a price floor because it allows suppliers of service (laborers) to provide their services within a decided rate even when the demanders (employers) are willing to hire them for a much lesser price.
Also read:
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