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The equilibrium market wage rate is, rup...

The equilibrium market wage rate is, rupee 14,000 per month. The government finding it low fixes minimum wage rate at rupee 18,000 per month. Examine the implications of this decision. Use diagram.

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Payment of wage rate (rupee 18,000) higher than equilibrium wage rate (rupee 14,000) leads to excess supply of labour as shown in the diagram, equal to AB. Since supply is greater than demand, it may lead to unemployment equal to AB.
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SANDEEP GARG-PRICE DETERMINATION AND SIMPLE APPLICATIONS-Long Answer Type Questions
  1. The equilibrium market wage rate is, rupee 14,000 per month. The gover...

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  2. How is equilibrium price of a commodity determined? Explain with the h...

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  3. If at a given price of a commodity, there is excess demand, how will t...

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  4. If there is excess supply at a given price, then how will the equilibr...

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  5. Explain with the help of a diagram the effect of a rightward shift of ...

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  6. Discuss the effect of change in supply on equilibrium price and equili...

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  7. Market for a good is in equilibrium. There is an 'increase' in demand ...

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  8. How is the equilibrium price and equilibrium quantity of a normal comm...

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  9. Explain the effect on equilibrium price and equilibrium quantity in th...

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  10. Market for a good is in equilibrium. What is the effect on equilibrium...

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  11. There is a simultaneous 'decrease' in demand and supply of a commodity...

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  12. When will (a) simultaneous increases and (b) simultaneous decreases in...

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  13. Market for a product is in equilibrium. Demand for the product 'decrea...

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  14. If the demand and supply of a commodity both increase, the equilibrium...

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  15. Market for a good is in equilibrium. There is simultaneous "Increase" ...

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  16. Market for a good is in equilibrium. There is simultaneous "decrease" ...

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  17. Market for a good is in equilibrium. Explain the chain of reactions In...

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  18. Market for a good is in equilibrium. There is simultaneous "increase" ...

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  19. Discuss the concept of "Price Ceiling" with the help of diagram.

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  20. If equilibrium price of a good is greater than its market price, expla...

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  21. Briefly discuss the meaning of "Price Floor" with the help of diagram.

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