question archive If the supply of unskilled domestic labor and the supply of unskilled immigrant labor are both perfectly inelastic, then the typical market equilibrium will be such that: A
If the supply of unskilled domestic labor and the supply of unskilled immigrant labor are both perfectly inelastic, then the typical market equilibrium will be such that: A
Subject:EconomicsPrice:2.88 Bought3
If the supply of unskilled domestic labor and the supply of unskilled immigrant labor are both perfectly inelastic, then the typical market equilibrium will be such that:
A. Immigrant labor will replace domestic labor.
B. The perfectly inelastic supply of unskilled domestic labor will prevent the hiring of any unskilled immigrant labor.
C. The post-immigration equilibrium will be associated with lower wages being paid to the unskilled immigrants compared to the wages paid to unskilled domestic labor.
D. Wages paid to unskilled domestic labor will be less under immigration than under no immigration.
E. Labor demand will shift out with increased immigration.
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If the supply of unskilled domestic labor and the supply of unskilled immigrant labor are both perfectly inelastic, then the typical market equilibrium will be such that , option c ....The post-immigration equilibrium will be associated with lower wages being paid to the unskilled immigrants compared to the wages paid to unskilled domestic labor.
This option is correct because when labour supply is inelastic and even if wages falls below equilibrium level than also supply will continue and immigrant labour requirement of work is higher as compared to domestic labour due to higher cost of living which arises since they migrate , comparatively domestic labour cost of living is less . Hence the supply curve of labour is inelastic shows that option c is correct
