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

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section6.1: Controls On Prices
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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
Transcribed Image Text: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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