Suppose that at the current labor market equilibrium, the wage is 100 and the quantity demanded of labor at that wage is 200. If the labor demand curve shifts to the right by 50, why is it the case that overall employment at the new equilibrium point will not be 250? Explain. (Hint: it might be easier to answer this question with a graph of the labor market)

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Answer Imagine the following graph The xaxis represents the quantity of labor demanded and supplied ... View the full answer