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Suppose the labour market is characterized by the munuwig inctions: Ld = 100 - 5W Qs = 20 + 5W where Ld and Ls are
Suppose the labour market is characterized by the munuwig inctions: Ld = 100 - 5W Qs = 20 + 5W where Ld and Ls are demand and supply for labour, and W is the hourly wage rate. Assume government pays a subsidy of $2 per hour of work for each worker. How does this subsidy change the hourly wages? O A. Increases wages received by workers by $2.00 O B. Decreases wages paid by employers by $2.00. C. Increase wages received by workers by $1.00 O D. Increases wages received by workers by $1.50
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