A review of the jargon: Is the minimum wage a “price ceiling” or a “price floor”? What about rent control? How do U.S. business owners change their behavior when the minimum wage rises? How does this...

A review of the jargon: Is the minimum wage a “price ceiling” or a “price floor”? What about rent control? How do U.S. business owners change their behavior when the minimum wage rises? How does this impact teenagers?  The basic idea of deadweight loss is a willing buyer an a willing seller can’t find a way to make an exchange. In the case of the minimum wage law, the reason they can’t make an exchange is because it’s illegal for the buyer (the firm) to hire the seller (the worker) at any wage below the legal minimum. But how can this really be a “loss” from the worker’s point of view? It’s obvious why business owners would love to hire workers for less than the minimum wage, but if all companies obey the minimum wage law, why are some workers still willing to work for less than that?