The figure given below shows the impact of immigration on the labor market of a country.Immigration in shifts the labor supply curve from S to S'.
-Refer to Figure 18-3.Post immigration the earnings of the native laborers in the country declines by the area:
A)ABC.
B)wACw'.
C)ABCE.
D)wABw'.

Question

The figure given below shows the impact of immigration on the labor market of a country.Immigration in shifts the labor supply curve from S to S'. 
-Refer to Figure 18-3.Post immigration the earnings of the native laborers in the country declines by the area:
A)ABC. 
B)wACw'. 
C)ABCE. 
D)wABw'.

Quizplus · Accepted Answer

The decline in earnings of native laborers due to immigration is represented by the area between the initial and new wage levels, which is wABw'.

The Figure Given Below Shows the Impact of Immigration on the Labor