Answer:
C: Price floor.
Step-by-step explanation:
A price floor is a government-imposed minimum price that is set above the equilibrium price in a market. It is designed to protect workers by ensuring that they receive a certain minimum wage for their labor.
In the case of the minimum wage, the government establishes a legal minimum hourly wage that employers must pay to their employees. This minimum wage is set above the equilibrium wage that would be determined by the forces of supply and demand in the labor market.
By setting a price floor, the government aims to provide workers with a fair wage and prevent exploitation. It ensures that workers receive a minimum level of income and helps to alleviate poverty and inequality.
However, price floors can have unintended consequences. For example, if the minimum wage is set too high, it can lead to job losses as employers may be unable or unwilling to pay the higher wage. Additionally, it can result in a decrease in the demand for labor, potentially causing businesses to reduce their workforce or rely more on automation.
In summary, the minimum wage is an example of a price floor. It is a government-imposed minimum price that ensures workers receive a certain minimum wage, but it can have both positive and negative effects on the labor market and employment levels.