Immigration is a multi-faceted phenomenon, with the potential for both large-scale and industry- specific effects. Consider the following two effects of immigration that could occur in a specific market: • More consumers are now in the market. • The price of labor goes down due to increased competition in the labor market. Focusing only on these two effects, what would we expect to happen to prices and quantities in this market? Note labor is used as an input in all industries. a. Prices will decrease, but quantities could increase, decrease, or stay the same. b. Prices will increase, but quantities could increase, decrease, or stay the same. c. Quantities will decrease, but prices could increase, decrease, or stay the same. d. Quantities will increase, but prices could increase, decrease, or stay the same.

Immigration is a multi-faceted phenomenon, with the potential for both large-scale and industry- specific effects. Consider the following two effects of immigration that could occur in a specific market: • More consumers are now in the market. • The price of labor goes down due to increased competition in the labor market. Focusing only on these two effects, what would we expect to happen to prices and quantities in this market? Note labor is used as an input in all industries. a. Prices will decrease, but quantities could increase, decrease, or stay the same. b. Prices will increase, but quantities could increase, decrease, or stay the same. c. Quantities will decrease, but prices could increase, decrease, or stay the same. d. Quantities will increase, but prices could increase, decrease, or stay the same.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter30: The Labor Market

Section: Chapter Questions

Problem 6E

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