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Consider the competitive market for widget A. The market is currently at equilibrium with respective price and quantity traded, P* and Q. Firms in the

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Consider the competitive market for widget A. The market is currently at equilibrium with respective price and quantity traded, P* and Q\". Firms in the market for widget A employs only foreign workers who are paid at a competitive wage w. The following series of events take place: (i) A new governmental law is passed that cuts the number of allowable foreign workers in the country by half. (ii) At the same time, a shock on the market for widget B (a close substitute for widget A) makes widgets B to become illegal While Widgets A remain allowed. Like the market for widget A, the market for widget B only used foreign workers. (iii) Finally, the country has reached an unexpected level of growth so that income per capita in the country has gone up. As a result, the demand in the market for widget A is multiplied by 1.5

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