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Answer to Question #113652 in Microeconomics for asma
Question #113652
Differences in pay can always be explained by the
demand for, and supply of, labour. Do you agree with
this statement? Explain your answer
demand for, and supply of, labour. Do you agree with
this statement? Explain your answer
Expert's answer
I don't agree, because sometimes the minimum wage can be set by the government without taking into account of current demand and supply. It can induce unemployment (the demand for labor at this price is lower, than supply).
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