When will a minimum wage be an effective price control? When it is a ________a. Maximum "price" that is above the equilibrium priceb. Maximum "price" that is below equilibrium pricec. Minimum "price" that is above equilibrium priced. Minimum "price" that is below equilibrium price

Respuesta :

Answer:

c. Minimum "price" that is above equilibrium price

Explanation:

if the minimum wages is below equilibrium then it will be ineffective as there wasn't any agent willing to trade his labor at this rate.

The minimum wages must be placed above equilibrium to be effective. This will force both, laborers who were willing to work for less and employees whose intention were to pay less than minimum to trade at minimum wage.

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