FIGURE 14- 1 Suppose an Island Economy Has Only Two

FIGURE 14- 1 Suppose an island economy has only two labour markets - fishing (high skill) and farming (low skill) .There are 1000 males and 1000 females in the labour force.There is an equal distribution of skilled and non- skilled workers among each sex.

-Refer to Figure 14- 1.Suppose the employers in the fishers labour market begin to discriminate against male workers.Which of the following can we expect to occur in the fishers labour market?

A) The labour supply curve shifts to the left until a new equilibrium is reached at point A and the wage rises to $120 per day.
B) There will be an equal flow of workers between the two markets,equilibrium will remain at point E and the wage at $100 per day.
C) The demand for labour curve shifts to the left until a new equilibrium is reached at point C and the wage falls to $80 per day.
D) The demand for labour curve shifts to the right until a new equilibrium is reached at point B and the wage rises to $120 per day.
E) The labour supply curve shifts to the right until a new equilibrium is reached at point D and the wage falls to $80 per day.