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Other things constant, if the cost of labor goes down, the profits of firms will
a. increase, and short-run aggregate supply will shift to the right.
b. fall, and short-run aggregate supply will shift to the left.
c. increase, and long-run aggregate supply will shift to the right. d. fall, and long-run aggregate supply will shift to the left.
Can you determine precisely by how much producer surplus has increased as a result of the $14.82 increase in the average fare? If you cannot be precise, can you determine whether it will be less than, or more than, a specific amount?
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Use appropriate assumptions where required. These may help you to simplify any complexity. Selecting appropriate assumptions in economics is
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THE SOUTH AFRICAN GOVERNMENT IS NOT PROVIDING ENOUGH WELFARE OR SUBSIDIES TO THE POOR AND UNDERPRIVILEDGED.
Suppose there is a simultaneous increase in the demand for diamonds and increase in the supply of diamonds. Which of the following will occur as a result of these simultaneous events?
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