Figure 9.3 represents the Mexican labor market.Assume that labor and capital are the only factors of production.Also assume the initial supply schedule of labor is denoted by S0 and consists entirely of native Mexican workers.The demand schedule of labor is denoted by DMexico.

-Consider Figure 9.3.If Honduran migration to Mexico results in the labor force increasing to 12 workers,denoted by schedule S1,the:

Question

Figure 9.3 represents the Mexican labor market.Assume that labor and capital are the only factors of production.Also assume the initial supply schedule of labor is denoted by S0 and consists entirely of native Mexican workers.The demand schedule of labor is denoted by DMexico.
 
-Consider Figure 9.3.If Honduran migration to Mexico results in the labor force increasing to 12 workers,denoted by schedule S1,the:

Quizplus · Accepted Answer

When the labor force increases due to migration, the supply of labor increases, leading to a decrease in the wage rate. As wages decrease, the cost of labor for capital owners decreases, potentially increasing their profits or payments.

Figure 93 Represents the Mexican Labor Market