The government establishes minimum wage. What will be the result of this price floor? A. It will cause an increase in supply B. It will create a surplus C. It will create a shortage D. It will cause an increase in demand

The government establishes minimum wage. What will be the result of this price floor? A. It will cause an increase in supply B. It will create a surplus C. It will create a shortage D. It will cause an increase in demand

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand, And Government Policies

Section: Chapter Questions

Problem 2CQQ

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The government establishes minimum wage.
What will be the result of this price floor?
A. It will cause an increase in supply
B. It will create a surplus
C. It will create a shortage
D. It will cause an increase in demand

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