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the minimum wage a good example of how price floors can harm the very people who are supposed to be helped by undermining economic cooperation is the minimum wage legislating a minimum wage is commonly seen as an effective way of giving raises to lowwage workers unfortunately it like any price floor creates a surplus, well the minimum wage is a price floor the minimum wage is a price below which you cannot sell labor and the suppliers of labor exceed the buyers of labor so its not surprising that a minimum wage is often politically successful, a governmentset minimum wage is a price floor on the price of labour a price floor is a government or groupimposed price control or limit on how low a price can be charged for a product 1 good commodity or service, minimum wage is an example of a government intervention in order to redistribute wealth through the use of a price floor a price floor is the legal limit on how low a price may be set for a good in the case of minimum wage employees are the suppliers of labor the good while businesses become the consumers
the most common price floor is the minimum wagethe minimum price that can be payed for labor price floors are also used often in agriculture to try to protect farmers for a price floor to be effective it must be set above the equilibrium price, congressional democrats have introduced a proposal to raise the minimum wage to 12 by 2020 but republicans typically argue that raising the wage floor costs jobs and hurts the very people it is
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the minimum wage is an example of a price floor in economics a price floor is the absolute minimum price at which a good or service labor in this case can be sold and it is usually set by the government price floors are set above the market equilibrium price of a good or service, a price floor is a legal minimum in which the government does not allow the price of a good or service to fall below the floor buyers caught paying less than the floor price face fines or other forms of punishment, a price floor or a minimum price is defined as an intervention to raise market prices if the government feels the price is too low in this case since the new price is higher the producers benefit for a price floor to be effective the minimum price has to be higher than the equilibrium price, we are going to pass a law minimum wage that says any employer has to pay at least 7 an hour 7 an hour it has to be at least 7 an hour so this right over here is a price floor