Q#3

Wage (W)

I' ||\\

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I || \\ Initial Supply (I)

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D L*

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Equilibrium (W')

In the illustrative graph

1. Points (W*, L*) at the point where the initial supply curve (I) and demand curve (D)
converge are where the initial equilibrium is located.
2. After the policy is put into place, the labor supply shifts to the right, creating a new
supply curve designated as I.
3. Points (W', L') at the intersection of the same demand curve (D) and the new supply
curve (I') are where the new equilibrium first appears.
4. While the equilibrium labor amount (L') increases in contrast to the initial equilibrium
labor quantity (L*), the equilibrium wage (W') decreases from the first equilibrium wage
(W*).
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(B)
Workers: This arrangement yields clear benefits for laborers. The arrangement of
momentary handicap protection, financed completely by the business, goes about as a
defend for representatives against unanticipated interruptions brought about by brief
sicknesses or wounds.
Company's Benefits: While the underlying discernment might propose that the firm
exclusively bears the monetary obligation of the arrangement, there are likely gains for
the firm too. By offering transient inability protection to laborers, bosses advance quick
clinical consideration chasing and quicker recuperation. Therefore, this could bring about
diminished occurrences of truancy and more limited recovery times, coming full circle in
uplifted efficiency levels. Moreover, the consideration of thorough advantages, including
handicap protection, can add to raised worker fulfillment, possibly prompting further
developed consistency standards and, surprisingly, a decrease in enlistment and preparing
costs.
Firm’s: The strategy likewise stretches out advantages to a more extensive society. Ideal
admittance to momentary incapacity protection discourages laborers from deferring
clinical consideration because of monetary concerns. This ideal intercession can prompt
superior wellbeing results and a lighter burden on medical services frameworks. In
addition, the strategy's affirmation of monetary solidness for laborers during times of
disease or injury mitigates the gamble of these specialists diving into neediness or
depending on government help. This adds to a more-steady friendly texture and possibly
eases the stress on friendly government assistance programs.
Workers: Upgraded employer stability, diminished monetary strain during wellbeing
related mishaps
Firms: Potential additions in efficiency because of diminished truancy as well as
expanded worker spirit
Society: Improved wellbeing results, diminished strain on friendly government assistance
organizations, and a stronger labor force