An influx of working age immigrants (both legal and illegal) has expanded the si
ID: 1107332 • Letter: A
Question
An influx of working age immigrants (both legal and illegal) has expanded the size of the labor force. At the same time, a slowdown in the manufacturing sector of the economy has impacted the labor market. These changes would be reflected how in the supply and demand for labor?
Both the supply and demand curves would move to the right.
The supply curve would move to the right and the demand curve to the left.
The demand curve would move to the right and the supply curve to the left.
Both the supply and demand curves would move to the left.
The two effects would counterbalance each other resulting in no change.
a.Both the supply and demand curves would move to the right.
b.The supply curve would move to the right and the demand curve to the left.
c.The demand curve would move to the right and the supply curve to the left.
d.Both the supply and demand curves would move to the left.
e.The two effects would counterbalance each other resulting in no change.
Explanation / Answer
Answer
Option b
The supply curve would move to the right and the demand curve to the left.
The migrants increases the supply of labor so this increases supply and supply curve shifts to the right
the slowdown in economy decreases the demand for labor which shifts the demand curve to the left.