When the government sets the labor price wage at a specific


When the government sets the labor price (wage) at a specific level, what happens to the mechanism of supply and demand, consumer surplus, producer surplus, and prices of goods and services produced by labor? How does price control affect market efficiency? Also, given that the demand for each commodity has a level of elasticity, do you think increasing the price (wages) of labor (a service commodity) could reduce the demand for labor? Justify your answers.

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Business Management: When the government sets the labor price wage at a specific
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