Asked by Vishal Sharma on Jul 01, 2024

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An increase in immigration will lower the equilibrium wage, all else held constant.

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers, resulting in a stable labor market condition.

Immigration

The action of coming to live permanently in a foreign country.

  • Ascertain the factors responsible for modifications in the labor demand and supply curves.
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bushra omran6 days ago
Final Answer :
True
Explanation :
An increase in immigration increases the supply of labor. According to basic economic principles, an increase in supply, with demand remaining constant, will lead to a decrease in the price of labor, which in this context is the equilibrium wage.