refer to the following diagram, in which Sd is the supply curve of domestic labor, St is the total labor supply curve including the supplies of illegal immigrant workers. L is measured in thousands of workers.
-Consider the market depicted in the diagram.If all illegal aliens were deported:
A)70,000 domestic workers would replace the 70,000 deported workers in these jobs
B)the wage would rise to $10,attracting 30,000 domestic workers into these jobs
C)the wage would rise to $10,but there would be a shortage of 40,000 workers
D)the wage would remain at $6,and there would be a shortage of 40,000 workers

Question

refer to the following diagram, in which Sd is the supply curve of domestic labor, St is the total labor supply curve including the supplies of illegal immigrant workers. L is measured in thousands of workers.
-Consider the market depicted in the diagram.If all illegal aliens were deported:
A)70,000 domestic workers would replace the 70,000 deported workers in these jobs 
B)the wage would rise to $10,attracting 30,000 domestic workers into these jobs 
C)the wage would rise to $10,but there would be a shortage of 40,000 workers 
D)the wage would remain at $6,and there would be a shortage of 40,000 workers

Quizplus · Accepted Answer

If all illegal aliens were deported, the total labor supply would decrease from St to Sd, causing the equilibrium wage rate to rise from $6 to $10 (point A to point B). This increase in wages would attract an additional 30,000 domestic workers, bringing the total supply of labor to the new equilibrium level of 100,000 workers (point C). Therefore, choice B is correct. Choices A, C, and D are incorrect, as they do not accurately reflect the impact of deporting illegal aliens on the labor market.

Refer to the Following Diagram, in Which Sd Is the Supply