The graphs below show demand for labor in two countries, A and B, and several vertical labor supply curves. Use these diagrams to answer the question about the effects of migration from one country to the other in search of a higher wage. Let the amount of migration (change in labor supply) be equal to the (identical) horizontal distance between the supply curves in both graphs. Country A Country B WA SA SA WB Se SB d e g PB a b LA LB What is the effect of this migration on the welfare of factors other than workers in Country A?

The graphs below show demand for labor in two countries, A and B, and several vertical labor supply curves. Use these diagrams to answer the question about the effects of migration from one country to the other in search of a higher wage. Let the amount of migration (change in labor supply) be equal to the (identical) horizontal distance between the supply curves in both graphs. Country A Country B WA SA SA WB Se SB d e g PB a b LA LB What is the effect of this migration on the welfare of factors other than workers in Country A?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter30: The Labor Market

Section: Chapter Questions

Problem 13E

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The graphs below show demand for labor in two countries, A and B, and several vertical labor supply curves. Use these diagrams to answer the question about the effects of migration from one country to the other in search of a higher wage. Let the amount of migration (change in labor supply) be equal to the (identical) horizontal distance between the supply curves in both graphs. Country B Country A Se SB WB SA SA WA d PB h b a DA LB LA What is the effect of this migration on the welfare of workers who migrate? They gain area g They gain area (g+h+e) They gain area (a+b+c). O They gain area (g+h)
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