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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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.
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