The tools of supply and demand analysis can be used to explain wage differences between skilled and unskilled workers.

Question

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Supply and demand analysis can be used to understand the wage differences between skilled and unskilled workers. Skilled workers are often in higher demand and have a lower supply, leading to higher wages. On the other hand, unskilled workers have a higher supply and lower demand, resulting in lower wages.

The Tools of Supply and Demand Analysis Can Be Used