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The market for banquet tables is initially in equilibrium and is shown below.The main group of buyers of banquet tables have just experienced an average
The market for banquet tables is initially in equilibrium and is shown below.The main group of buyers of banquet tables have just experienced an average decrease in wages of10%
. Demonstrate the effect of the wage cut on the equilibrium price and quantity of banquet tables byshifting the appropriate curve on the graph below. Assume banquet tables are a normal good.
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