Answer:
C.the wage in the market will be unaffected
Step-by-step explanation:
Market for 'Dog Walkers' is a case of 'Labour market'. In Labour markets, employees are sellers & firms buyers of the labour skills.
- Firm's labour demand curve is downward sloping due to inverse relationship between price (wages) & labour demanded
- Employees labour supply curve is upward sloping due to positive relationship between price (wages) & labour supplied
- Equilibrium wages are where Market Demand for labour = Market supply of labour.
- Price (Wage) Floor is the minimum mandated wage by government, below which wages are not allowed to be kept.
Government imposition of minimum wage (base price) below the market wage is not a binding price floor, as it causes no change in the equilibrium wage, since equilibrium age rate is already above the government laid down price floor.