Option 1 -> The minimum wage is below market rate, so wages won't fall from the equilibrium level.
Option 2 -> The minimum wage being below market rate provides no incentive for wages to rise.
Option 3 -> Since the minimum wage (\450) is below the market equilibrium wage (\500), it is non-binding and has no effect.
Option 4 -> Unemployment only increases when minimum wage is set above equilibrium, not below it.
Hence, Option 3: The wage rate will remain unaffected -> A minimum wage is only binding (effective) when set above the market equilibrium wage. In this case, the market wage of \500alreadyexceedsthegovernment′sminimumwagefloorof450. Since employers are already voluntarily paying \500(themarket−clearingrate),the450 minimum wage requirement is non-binding. The market continues to operate at its natural equilibrium of $500, making the government intervention ineffective. This is why the wage rate remains unaffected. -> correct