Question

As a result of immigration, the demand for labor would _______, thesupply of labor would ______, and the real wage would ________.a. remain the same, decrease, decreaseb. increase, decrease, remain the samec. remain the same, increase, decreased. decrease, increase, remain the samee. decrease, increase, decrease

Answer 1

The correct answer is option c.

Step-by-step explanation:

As a result of immigration the population will increase. This will further cause the supply of labor to increase. The increase in supply of labor will further lead to a rightward in the labor supply curve. Consequently, wage rate will fall.

The demand for labor will not be affected by influx of workers.

So, option c is the correct answer.