As a result of an increase in the enforcement of illegal immigration laws, the demand for labor will ________, the supply of labor will ________, and the real wage will ________.

Question

Quizplus · Accepted Answer

With stricter enforcement of illegal immigration laws, the supply of labor decreases because there are fewer workers available. This leads to an increase in real wages as employers have to pay more to attract the reduced number of available workers. Demand for labor remains the same as it is determined by other factors such as the overall economic activity and not directly by the supply of labor.

As a Result of an Increase in the Enforcement of Illegal