Wage Rate Interest Exchange Price floor Price ceiling Tax Tax

Rate Rate imposition imposition

on on
consumers producers
Impact The demand Interest rate As the price The demand A price If instead The
on curve for labor levels are a of a foreign for a foreign ceiling the tax is imposition
demand shows the factor of the currency currency restricts the imposed on of the tax
quantity of supply and rises, its decreases as maximum consumers, causes an
labor demand or demand falls. its value selling price the increase in
employers credit: an Foreign increases. All of a product demand the market
wish to hire at increase in households, of a or service. curve shifts price and
any given the demand business, and country’s In the case by the decrease in
salary or wage for money governments foreign of a price amount of the quantity
rate, under the or credit will that need to currency floor below the tax product
ceteris paribus raise purchase needs are the (fifty cents) demanded.
assumption. A interest domestically met by its equilibrium to D2.
change in the rates, while priced goods, own citizens, price, excess When the
wage or salary a decrease services, or business, and demand or tax is
will result in a them. It is financial governments shortages imposed on
change in the because assets , who import will result consumers,
quantity higher provide the goods, pay from the the
demanded of interest necessary for services, lower price downward
labor. If the rates mean foreign and invest in ceiling. shift in the
wage rate higher currency. assets demand
increases, borrowing denominated curve has
employers will cost, people in the local the same
want to hire will currency. magnitude
fewer eventually as the
employees. start upward
The quantity of spending shift in the
labor less. The supply
demanded will demand for curve when
decrease, and goods and the tax is
there will be a services will imposed on
movement then drop, producers.
upward along which will
the demand cause
curve. If the inflation to
wages and fall.
salaries
decrease,
employers are
more likely to
hire a greater
numbers of
workers.
Impact If wages Listed below When Price floors Price The effect A tax
on continue to are some of countries prohibit ceilings of the tax imposed on
supply rise, more the exchange prices from prevent on the either the
workers will be potential rate falling below prices from equilibrium supplier or
willing to effects of appreciates a specified exceeding a between the
participate in rising relative to threshold. certain supply and purchaser
the labor interest rate that of When a price threshold. demand is has the
market, on the another, the floor is set When a to shift the same effect
resulting in an supply cost of its higher than price ceiling quantity on prices
upward shift in chain: goods and the is set lower toward a and
the labor Access to services equilibrium than the point quantities.
supply curve. capital- As rises. price, the equilibrium where the
The sum of the interest Imports quantity price, the demand
employees rates become less supplied will quantity before tax
base salary and continue to costly. exceed the demanded minus the
any potential rise, the cost Ultimately, quantity will exceed supply
bonuses they of the this can lead demanded the quantity before tax
may receive is capital for to a decline resulting in supplied, equals the
the employees' smaller in exports excess resulting in tax. A tax
primary source suppliers is and an supply or excess raises the
of income. In likely to increase in surpluses. demand or price a
addition to increase. In imports. shortages. buyer pays
wages, other the market by a lesser
variables can with rising amount
shift the supply interest than the
curve to the rates, they tax itself.
left or right. could also Likewise,
discover the price
that obtained
traditional by the
lenders have seller
a smaller decreases,
pool of but by a
available lesser
financing. amount
than the
tax.