Assumptions: (1) Employers in this market are willing and able to ignore minimum wage laws; (2) Sd represents the supply of domestic-born (and legal immigrant) workers; (3) Sₜ represents the total supply of workers in this labor market (Sd plus illegal immigrants) ; and (4) unless otherwise stated, illegal immigration is not effectively blocked by the government.The equilibrium wage and level of employment are, respectively,
A) $4.00 and 50,000.
B) $4.00 and 60,000.
C) $4.00 and 70,000.
D) $6.50 and 60,000.
Correct Answer:
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