If the Labour Supply Curve Shifts to the Left and the Labour

question 93

Essay

If the labour supply curve shifts to the left and the labour demand curve remains unchanged, what will happen to the equilibrium wage and the equilibrium level of employment? Illustrate your answer with a graph.
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Definitions:

Free Trade

International exchange of goods permitted to operate freely, devoid of tariffs, quotas, or any form of restraint.

Low-Opportunity Cost Producer

A producer who can produce a good or service at a lower opportunity cost than competitors, enabling more efficient production and allocation of resources.

Joint Output

Joint output describes a situation where the production process results in two or more products being produced simultaneously from the same inputs.

Mutual Gains

Benefits that occur in a situation or transaction that are advantageous to all involved parties.