Asked by Katherine Broussard on Jun 27, 2024
Verified
Refer to Scenario 18-4. In the labor market in southern Canada, the equilibrium wage
A) and the equilibrium quantity of labor will rise.
B) and the equilibrium quantity of labor will fall.
C) will rise, and the equilibrium quantity of labor will fall.
D) will fall, and the equilibrium quantity of labor will rise.
Equilibrium Wage
The wage rate at which the quantity of labor supplied equals the quantity of labor demanded in the market.
Northern Minnesota
A geographical region in the U.S. state of Minnesota, known for its natural beauty and outdoor activities.
Southern Canada
The region of Canada located closest to the United States border, characterized by its populous cities, milder climate, and economic hubs.
- Examine how external changes, such as immigration or industry attractiveness, influence labor markets.
Verified Answer
MG
Michael GallegosJun 28, 2024
Final Answer :
D
Explanation :
When workers immigrate to southern Canada, the supply of labor increases. This leads to a decrease in the equilibrium wage due to the higher supply, but the quantity of labor employed rises because employers can hire more workers at the lower wage.
Learning Objectives
- Examine how external changes, such as immigration or industry attractiveness, influence labor markets.