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…

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 \$500 already exceeds the government's minimum wage floor of \\$500alreadyexceedsthegovernment′sminimumwagefloorof450. Since employers are already voluntarily paying \$500 (the market-clearing rate), the \\$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