it means that the market clearing price is actually allowed to be the prevailing price in the market
Yes, I agree. For the market to clear it must actually be able to trade at that price.
A minimum wage law forces a market to not clear
Yes—as a more general statement, any binding price constraint causes the market to not clear.
Yes, I agree. For the market to clear it must actually be able to trade at that price.
Yes—as a more general statement, any binding price constraint causes the market to not clear.