Final answer:
A sudden increase in Canada's population due to immigration may minimally affect wages if immigrants match the existing population's skill set and could initially drive up housing rents due to increased demand. However, with time for economic adjustment, these effects may stabilize.
Step-by-step explanation:
If the population of Canada suddenly grew because of a large immigration, the wages in the country might be affected differently depending on various factors. If the immigrants possess similar skill sets and education levels as the existing population, they would contribute to both increased production and consumption. In this case, the effect on wages may be minimal as the labor supply increase could be matched by a corresponding rise in labor demand due to more production and consumption activities.
As for the rents earned by the owners of land and capital, an increase in the population usually leads to higher demand for housing, which can drive up rent prices. However, this scenario can also attract investments in capital and land development, potentially leading to more supply which could stabilize or even reduce rent prices over time. Similarly, more jobs and income generated by a growing population could increase the demand for land for commercial purposes, likely raising the rents earned from these properties.
In essence, the impact of immigration on wages and rents depends on how well the economy can absorb the new labor force and how quickly the market can adjust to the increased demand for housing and other services. Given enough time for adjustment, a population increase would likely not extensively distort the economic equilibrium.