asked 202k views
4 votes
Which point on the graph shows minimum wage as the price floor?

Which point on the graph shows minimum wage as the price floor?-example-1
asked
User Exl
by
8.6k points

2 Answers

6 votes
$18 i tried $12 and it was right then i tried $18 and was correct
answered
User Matt Holland
by
7.0k points
4 votes

The price floor is $18. A price floor is when the government sets a minimum price for a given good or service, in this case for labor. A price floor is always set above equilibrium which is why the price floor intersect both curves (labor supply and demand) at different points. However, setting a price floor for labor causes unemployment. This is represented by the difference between the labor supply and demand at the price floor.

answered
User Macko
by
8.3k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.