When labor is substitutable between two markets, we should expect:

Question

Quizplus · Accepted Answer

When labor is substitutable between two markets, it means workers can easily move from one market to the other in response to wage differences. This mobility tends to equalize wages across the two markets as employers compete for labor, leading to a similar equilibrium wage in both markets. Choices B and C are not direct consequences of labor substitutability between markets.

When Labor Is Substitutable Between Two Markets, We Should Expect