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Suppose Workers in Labor Market X Are Qualified to Work

Question 2

Multiple Choice

Suppose workers in labor market X are qualified to work in an alternative competitive labor market Y,and vice versa.An increase in the demand for labor in market Y will:


A) increase labor supply in X and drive its wage down
B) decrease labor supply in X and drive its wage up
C) reduce labor supply in Y and drive its wage down
D) have no impact at all in X

Correct Answer:

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