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Suppose There Are Two Labor Markets, a and B, and Labor

Question 70

Multiple Choice

Suppose there are two labor markets, A and B, and labor is homogeneous between markets. The wage rate in labor market A falls relative to the wage rate in labor market B. What happens in labor market B?


A) The supply curve of labor shifts leftward.
B) The supply curve of labor shifts rightward.
C) The demand curve for labor shifts leftward.
D) b and c
E) none of the above

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