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Price Cannot Fall So Low That Some Sellers Choose to Supply

question 155

True/False

Price cannot fall so low that some sellers choose to supply a quantity of zero.


Definitions:

Minimum Wage Law

Legislation that sets the lowest hourly wage rate that an employer can legally pay its workers.

Employment

The condition of having paid work or the total number of people currently employed in the economy.

Labor Supply Curve

A graphical representation that shows the relationship between the wages received by individuals and the quantity of labor (hours worked) they are willing to offer at those wages.

Marginal Cost

The increase in cost resulting from the production of one additional unit of output.

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