Which of the following summarizes the impact of immigration growth on the labor market?
A)This will increase the labor supply, reduce the equilibrium wage and increase the quantity of labor demanded.
B)There will be an increase in the demand for labor. As a result, the wage rate will rise and the quantity of workers supplied will decrease.
C)There will be an increase in the demand for jobs. This will result in an increase in the equilibrium wage rate and a movement along the labor supply curve.
D)There will be an increase in both the demand for labor and the supply of labor. As a result, the equilibrium wage will not change.

Question

Quizplus · Accepted Answer

The growth in immigration will increase the supply of labor, shifting the supply curve to the right. This will result in a reduction in the equilibrium wage and an increase in the quantity of labor demanded, as employers will have a larger pool of potential workers to choose from.

Which of the Following Summarizes the Impact of Immigration Growth