Assume the labour market is initially in equilibrium.
a) Draw a demand and supply diagram to illustrate the initial equilibrium.
b) Explain the impact on the labour market if there is an increase in the price of the product.
c) Graphically illustrate the impact on the diagram you prepared for part (a).

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The Answer of Assume the labour market is initially in equilibrium.
a) Draw a demand and supply diagram to illustrate the initial equilibrium.
b) Explain the impact on the labour market if there is an increase in the price of the product.
c) Graphically illustrate the impact on the diagram you prepared for part (a).

Assume the Labour Market Is Initially in Equilibrium