Assumptions: (1) The demand for labor in Alphania and Betania are as shown by Dₐ and Dᵦ , respectively; (2) Alphania's native labor force is F and that of Betania is g; (3) wage L in Alphania is equal to wage m in Betania; and (4) full employment exists in both countries. If migration is costless and unimpeded, the absolute wage bill will necessarily
A) increase in Alphania if its labor demand curve is elastic.
B) increase in Betania if its labor demand curve is elastic.
C) decrease in Betania.
D) increase in Betania.
Correct Answer:
Verified
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