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Minimum Wage Is an Example of a Price Floor

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The minimum wage price floor is enacted so that the suppliers current or potential employees in this case will not sell their labor below the designated price even if the demanders employers are willing to hire them for less. For example many governments intervene by establishing price floors to ensure that farmers make enough money by guaranteeing a minimum price that their goods can be sold for. Minimum Wage Effects Solved Problem With Equations And Graph Youtube Labor is a key input at fast-food restaurants. . The question of minimum wage is primarily one debated by economists who really benefits by raising the minimum wage. The minimum wage is an example of a price ceiling. This helps to stabilize the farmers income so that they are not discouraged from producing more. Firms would hire more teenagers since their wage has now increased. A minimum wage is an example of a price floor and results in higher rates of unemplo...
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