Suppose the government cracks down on illegal immigration. How will this affect the demand and supply of labor
What will be an ideal response?
The reduction in immigration causes a decrease in the supply of labor (the curve shifts to the left). This results in a new equilibrium at a higher real wage and a lower level of employment. The quantity of labor demanded will also decrease, but the labor demand curve remains the same because none of the determinants of labor demand have changed.
You might also like to view...
The long-run supply curve for a competitive constant-cost industry is:
a. horizontal. b. vertical. c. upward-sloping. d. downward-sloping.
If a firm does not maximize value
A) it has not focused on what is important. B) it will shift its focus to market share. C) it will shutdown. D) it has paid too much in taxes.
When the supply curve of land is upward sloping and intersects the demand curve at $30 per acre, then the last acre brought into production receives
a. $30 in land rent b. $0 in land rent c. average land rent of somewhere between $0 and $30, depending on the price of land d. land rent equal to the price of an acre of land e. land rent greater than $30 because the last acre is located to the right (in the land market graph) of the intersection of the demand and supply curves
As one moves southeast on a downward sloping demand curve
A. demand becomes more inelastic. B. elasticity stays the same. C. demand becomes more elastic. D. one cannot tell what happens to elasticity unless the demand curve is linear.