208, 210 6.4. What effects do price floors have on economic activity? Why might politicians in a state or city enact a nonbinding minimum wage? Reason to Enact Nonbinding Minimum Wage Drag appropriate answer(s) here It works to reduce the existing unemployment rate. It leads employers to create better working conditions out of fear that a binding law may soon be imposed. It allows politicians to claim credit for enacting policies that help workers without increasing unemployment or creating any deadweight loss