The figure below represents the effects in the labor markets due to migration. Here, the world has been divided into a high-income "North" (left panel) and a low-income "South" (right panel). Dn and Sn are the labor demand and the labor supply curves in North. Ds and (Sr + Smig) are the labor demand and pre-migration labor supply curves in South. Sr is the post-migration labor supply curve in South. The value c is the cost of migrating.
When migration is not allowed, workers in North earn ________ per hour and workers in South earn ________ per hour.
A. $8.00; $3.00
B. $8.00; $4.25
C. $6.75; $3.00
D. $6.75; $4.25
Answer: A
Economics
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