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The following graph illustrates equilibrium in a perfectly competitive labour market. Make use of the graph to answer the question that follows. When the wage
The following graph illustrates equilibrium in a perfectly competitive labour market. Make use of the graph to answer the question that follows. When the wage rate equals W3, a. The number of employed remains unchanged at E1 b. This wage causes both labour supply and labour demand curves to shift rightwards. c. The number of employed increases compared to what happens at equilibrium. d. This wage is above the equilibrium wage. e. There is an excess supply of labour
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