HELP! Suppose a senator introduces a bill to legislate a minimum hourly

[Ryan]

wage of $8. This type of price...? control is called a ________
a) price ceiling
b) price floor
c) tax
d) quota

2) Two other senators introduce bills which would set the minimum wage at $3 or $9 per hour. Which of these minimum wages would be binding? Check all that apply
a) $3 per hour
b) $9 per hour

 

[Meg]

It is a price floor on the price of labor. $3 is below the equilibrium wage so it would be not binding but $9 would be