Wage Floor
Definition
A wage floor is a government-imposed minimum price that must be paid for each hour worked, typically set above equilibrium wages.
Related terms
Price Ceiling: A price ceiling is a government-imposed maximum price that can be charged for a good or service.
Labor Union: A labor union is an organization formed by workers to protect and promote their collective interests, such as negotiating higher wages and better working conditions.
Elasticity of Labor Demand: The elasticity of labor demand measures how responsive the quantity demanded of labor is to changes in its price (wages).
"Wage Floor" appears in:
Study guides (1)
AP Microeconomics - 5.2 Changes in Factor Demand and Factor Supply
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Resources
Cram Mode
AP Score Calculators
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.