Use the following figure to answer the question : Figure 18-3 :
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

Use the following figure to answer the question : Figure 18-3 : 
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 correct area representing the decline in earnings of the native laborers post-immigration is the area under the original wage level (w) and above the new wage level (w'), between the original quantity of labor (L) and the new quantity of labor (L'). This is represented by the trapezoid wABw'.

Use the Following Figure to Answer the Question : Figure