The citizens of Kingsville notice that their friends and family in the neighboring city of Deville are earning higher wages. We would expect the labor supply in Kingsville ________ and the labor supply in Deville to ________.

Question

Quizplus · Accepted Answer

Since Kingsville citizens notice that people in Deville are earning higher wages, they may want to move to Deville to take advantage of the higher wages, thus decreasing the labor supply in Kingsville (shift left) and increasing the labor supply in Deville (shift right). Therefore, option D is the best choice.

The Citizens of Kingsville Notice That Their Friends and Family