Suppose that the cost of living is 25 percent higher in Chicago than in Indianapolis.If wages in Chicago are 10 percent higher on average than wages in Indianapolis,then eventually the labor supply will
A) fall in Indianapolis,increasing the average wage there
B) fall in Chicago,increasing the average wage there
C) rise in Indianapolis,increasing the average wage there
D) rise in Chicago,decreasing the average wage there
E) fall in Indianapolis,decreasing the average wage there
Correct Answer:
Verified
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