Figure 9.2 represents the U.S.labor market.Assume that labor and capital are the only factors of production.Also assume the initial supply schedule of labor is denoted by S0 and consists entirely of native U.S.workers.The demand schedule of labor is denoted by D0.
Figure 9.2.U.S.Labor Market

-Consider Figure 9.2.As the result of the Mexican migration to the United States:

Question

Figure 9.2 represents the U.S.labor market.Assume that labor and capital are the only factors of production.Also assume the initial supply schedule of labor is denoted by S0 and consists entirely of native U.S.workers.The demand schedule of labor is denoted by D0.
Figure 9.2.U.S.Labor Market
 
-Consider Figure 9.2.As the result of the Mexican migration to the United States:

Quizplus · Accepted Answer

The increase in the supply of labor from Mexican migration will shift the supply curve to the right from S0 to S1, leading to a decrease in the equilibrium wage rate from W0 to W1. This decrease in wage rate will benefit the capital owners as they can hire labor at a lower cost, but it will negatively affect the native U.S. workers as their wages decrease and they face increased competition for jobs. Therefore, the native U.S. workers lose in this scenario.

Figure 92 Represents the U