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_YARA_ECON201

Q11- Question.No-1: In the labor market, workers would like to receive higher wages and

firms would like to pay lower wages. 5 Marks

a. Suppose that workers succeed in having a minimum wage established above the

equilibrium wage. What will happen to the number of workers employed when

compared to the original equilibrium? Explain. 2.5 Marks

b. Suppose that firm succeed in having a maximum wage established below the

equilibrium wage. what will happen to the number of workers employed compared to

the original equilibrium? Explain. 2.5 Marks

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