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Which point on the graph shows minimum wage as the price floor?

Which point on the graph shows minimum wage as the price floor?-example-1
User Exl
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2 Answers

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$18 i tried $12 and it was right then i tried $18 and was correct
User Matt Holland
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The price floor is $18. A price floor is when the government sets a minimum price for a given good or service, in this case for labor. A price floor is always set above equilibrium which is why the price floor intersect both curves (labor supply and demand) at different points. However, setting a price floor for labor causes unemployment. This is represented by the difference between the labor supply and demand at the price floor.

User Macko
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