Asked by Johnathan Wagner on Jul 22, 2024
Verified
Suppose that the market for labor is initially in equilibrium. An increase in immigration will cause the equilibrium wage
A) and the equilibrium quantity of labor to rise.
B) and the equilibrium quantity of labor to fall.
C) to rise and the equilibrium quantity of labor to fall.
D) to fall and the equilibrium quantity of labor to rise.
Equilibrium Wage
The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers, resulting in labor market equilibrium.
Labor
Human mental and physical contributions employed in the manufacturing of goods and services.
- Study the influence of external phenomena, including immigration and the appeal of industries, on the functioning of labor markets.
Verified Answer
ON
obrien neelyJul 23, 2024
Final Answer :
D
Explanation :
An increase in immigration increases the supply of labor. According to basic economic principles, an increase in supply, with demand remaining constant, leads to a decrease in price (wage, in this case) and an increase in the quantity consumed (quantity of labor employed, in this case).
Learning Objectives
- Study the influence of external phenomena, including immigration and the appeal of industries, on the functioning of labor markets.