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Business, 12.08.2020 22:01 rayne40

Jeff owns a coffee shop near a commercial zone. He used to pay $10 per hour to his employees. During the last year he opened three coffee shops in that same area. He could afford to do so because of the low wages. However, Jeff is now paying $15 per hour to his employees. Answer the following questions based on the supply and demand schedule of labor. Questions: 1: Who creates the demand for coffee shops? Who creates the demand for coffee shop employees? 2: Who controls the supply for coffee shops and based on what factors? 3: What happens to the number of coffee shops if the wage increases? What happens to the demand for employees for the coffee shops? 4: What happens if Jeff refuses to pay the equilibrium wage for coffee shop employees? 5: At what wage rate will there be excess labor supplied in the market? 6: At what wage there will be excess quantity demanded of laborers in the labor market?

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Jeff owns a coffee shop near a commercial zone. He used to pay $10 per hour to his employees. During...
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