The minimum wage is an example of

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The minimum wage is an example of

A. Price floor

B. Price ceiling

C. Equilibrium wage

D. Efficiency of labour

Answer: Option A

Solution (By Examveda Team)

The minimum wage is an example of Price floor. 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.

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