Suppose that clothes workers at a certain factory accept a pay cut of $3 per hour. (a) Draw a graph to show how this would affect the market for clothes. (b) Why does this shift occur? How does that affect the equilibrium price and quantity?

Principles of Economics 2e
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Chapter3: Demand And Supply
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  1. Suppose that clothes workers at a certain factory accept a pay cut of $3 per hour.

(a) Draw a graph to show how this would affect the market for clothes.

(b) Why does this shift occur? How does that affect the equilibrium price and quantity?

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