Answer to Question #128059 in Microeconomics for Palesa Motsatse

Question

Determine the size of the equilibrium that will result from an increase rate in tje wage rate from R250 to R300.

Answer 1

The size of equilibrium can be measured by the excess supply, i.e. supply of labour at 300 minus demand for labour at 250. Hence, the size of disequilibrium = excess supply = 125 - 80 = 45.