With a large group of citizens leaving a country,what will happen to the equilibrium wage and quantity of workers employed?
A) Both will fall.
B) Both will rise.
C) The equilibrium number of workers will rise and the wage will fall.
D) The equilibrium number of workers will fall and the wage will fall.
E) The equilibrium number of workers will fall and the wage will rise.

Question

Quizplus · Accepted Answer

When a large group of citizens leaves a country, the supply of labor decreases. This reduction in labor supply leads to a decrease in the equilibrium number of workers employed. However, because the supply of labor has decreased, the competition for remaining workers increases, driving wages up. Therefore, the equilibrium wage rises.

With a Large Group of Citizens Leaving a Country,what Will