Sample on Price Floor in Fast Food Employees

Sample on Price Floor in Fast Food Employees A Price Floor in Fast Food Employees Dec 21, 2018 in Economics A Price Floor in the Fast Food Service A price floor is a situation where price of a service or a good in the market cannot go lower than the regulated floor. In terms of minimum wage, this is the least possible an employee may receive. In most cases, minimum wage law is known to affect new workers, unskilled employee and employers. A literal example is that when someone drops something on the floor, it cannot go lower than the floor as it will hit and apparently stop. In the case of the protesting fast food employees, this is not a binding price floor, it is non-binding. In this case, fast food employees are the suppliers while the multi-national corporations that offer employment to them are the consumers. Raising the minimum wage to $15 is above the current equilibrium minimum wage. More employees will be willing to supply more of their labor; in contrast the multi-national corporations will not be willing to employ more workers.