The government exhibits limited influence in a market economy by setting of a minimum wage for workers.
What is government?
Government is a particular group of people that have power to rule in a country and who has the power to make laws, to enforce them in a country. a government is group which is either elected through people in system like democracy or their is rule by any one person i.e. monarchy. this is government is responsible for running of country or growth of its territory and takes all the decision for development of its country and people on behalf of the people in the country.
What is market economy?
A market economy is an economic system where demand and supply affects or governs the production of goods and services. According to the market economy's guiding principle, businesses that manufacture and sell products and services should do so at the highest price that customers are willing to pay. A natural economic equilibrium is reached when supply and demand are at equal levels.
What is minimum wage?
Minimum wage is either decided by collective bargaining or is stipulated by government through regulation, minimum wage is the lower rate at which the worker is employed by an employer. Minimum wage is decided by the government to bring equity among workers working at same rate and for same hours.
When the government imposes minimum wage, the wage of the worker is decided by the price level not by the equilibrium of demand and supply, in such way government influence market economy.
Supportive answer
Hence, option D is the correct answer
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