The Cost of the Minimum Wage Is Most Likely Borne

question 32

Multiple Choice

The cost of the minimum wage is most likely borne by:

• A)consumers who buy goods produced in the covered industry.
• B)producers who produce goods in the covered industry.
• C)producers in both the covered and uncovered industries.
• D)consumers who have a perfectly elastic demand for goods produced by the covered industry.

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Definitions:

Legal Value

Refers to something of worth that is recognized by law, often in the context of contracts where it pertains to the exchange of goods, services, or promises that are enforceable.

Preexisting Duty

An obligation that one party already owes to another under the law or an existing contract, which cannot serve as new consideration for a new contract.

Preexisting Duty Rule

A legal principle stating that an agreement to do something that one is already legally obligated to do is not valid consideration for a new contract.

Superlative Work

Work of the highest quality or degree, demonstrating excellence or outstanding performance.