In the year 541, an outbreak of bubonic plague hit the Byzantine Empire. Because the plague was

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In the year 541, an outbreak of bubonic plague hit the Byzantine Empire. Because the plague was spread by flea-infested rats that often lived on ships, ports were hit particularly hard. In some ports, more than 40 percent of the population died. The emperor, Justinian, was concerned that the wages of sailors were rising very rapidly as a result of the plague. In 544, he placed a ceiling on the wages of sailors. Use a demand and supply graph of the market for sailors to show the effect of the plague on the wages of sailors. Use the same graph to show the effect of Justinian's wage ceiling. Briefly explain what is happening in your graph.

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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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