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Ceteris paribus, the imposition of a minimum wage on a market often results in a. lower...

Ceteris paribus, the imposition of a minimum wage on a market often results in

a.

lower natural unemployment rate
b.

lower unemployment rate
c.

potentially higher prices for the final products
d.

All of the above are correct
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Answer #1

Ceteris paribus, the imposition of a minimum wage on a market often results in :

d. All of the above are correct

As the minimum wage law raises the wage level of the working poor and also lowers both natural unemployment and unemployment rate. And because of the minimum wage law, the government sets the minimum wage to pay to the worker which is binding and as a result of which producers raise the prices for the final products.

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