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If a government fixes the wage rate above the mar- ket equilibrium rate it will lead to (A) ex- cess demand for labour (B) low supply of labour (C) excess supply of labour (D) industrial strike ac- tions
Fixing the wage rate above the market equilibrium rate will disturb the demand and supply equilibrium of labor resource.
Wage rate above market will make labor as a resource costly for business and hence, there is possibility that the demand for labor will lower down. Thus, the supply of labor will get low.
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