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Answer to Question #128059 in Microeconomics for Palesa Motsatse
Question #128059
Determine the size of the equilibrium that will result from an increase rate in tje wage rate from R250 to R300.
Expert's answer
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.
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