The market determined wage rate is 500 per month whereas the minimum wage fixed by the government is $450 per month. As a result of this government intervention, Option 1: The wage rate will fall. Option 2: The wage rate will rise. Option 3: The wage rate will remain unaffected. Option 4: Unemployment will increase.

The answer is 'The wage rate will remain unaffected.'. View full solution:

The market determined wa>= rate is 500 per month whereas the minimum wa>= fixed by the government is $450 per month. As a result of this government intervention,

The wa>= rate will remain unaffected.

CUET Economics 2025 21 May Shift 1

Micro

Easy

The wage rate will fall.

The wage rate will rise.

The wage rate will remain unaffected.

Unemployment will increase.

✅ Correct Option: 3