The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6

-Because of illegal immigrants, the equilibrium wage rate of unskilled labor falls.

Question

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
 
-Because of illegal immigrants, the equilibrium wage rate of unskilled labor falls.

Quizplus · Accepted Answer

Looking at the demand and supply curves, an increase in the supply of unskilled labor (due to illegal immigrants) would shift the supply curve to the right, causing the equilibrium wage rate to fall. This is shown by the intersection of the new supply curve and the unchanged demand curve, which occurs at a lower wage rate than before. Therefore, the statement is true.

The Following Figures Show the Demand (D) and Supply (S)