Refer to the following dlagram, in which Sd Is the supply curve of domestic labo

Question

Refer to the following dlagram, in which Sd Is the supply curve of domestic labor and St Is the total labor supply curve Including the supples of illegal Immigrant workers. L is measured In thousands of workers Sd St 1 30 70 Consider the market depicted in the diagram. If all illegal aliens were deported, O the wage would remain at $6, and there would be a shortage of 40,000 workers. O 10,000 domestic workers would replace the 10,000 deported workers in these jobs O the wage would rise to $10, attracting 30,000 domestic workers into these jobs Othe wage would rise to $10, but there would be a shortage of 40,.000 workers

Explanation / Answer

Correct Answer:

C

If illegal immigrant workers are deported, then new equilibrium is established in the market. It will have 30000 domestic workers, employed at $10 wage rate.

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---