Question
Explain what happens to the price and quantity at equilibrium in a market for a commodity if thelabor cost increases due to a labor shortage;
Explain what happens to the price and quantity at equilibrium in a market for a commodity if thelabor cost increases due to a labor shortage;
Explain under what conditions the firm's revenue would increase as the new equilibrium is achieved.
Also explain what happens if the authorities limit the price to the original price.
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
