The graphs below show demand for labor in two countries, A and B, and several vertical labor supply curves. Use these diagrams to answer the question about the effects of migration from one country to the other in search of a higher wage. Let the amount of migration (change in labor supply) be equal to the (identical) horizontal distance between the supply curves in both graphs. Country A Country B WA SA SA WB Se SB d e g PB a b LA LB What is the effect of this migration on the welfare of factors other than workers in Country A?
The graphs below show demand for labor in two countries, A and B, and several vertical labor supply curves. Use these diagrams to answer the question about the effects of migration from one country to the other in search of a higher wage. Let the amount of migration (change in labor supply) be equal to the (identical) horizontal distance between the supply curves in both graphs. Country A Country B WA SA SA WB Se SB d e g PB a b LA LB What is the effect of this migration on the welfare of factors other than workers in Country A?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The graphs below show demand for labor in two countries, A and B, and several vertical labor
supply curves. Use these diagrams to answer the question about the effects of migration from one
country to the other in search of a higher wage. Let the amount of migration (change in labor
supply) be equal to the (identical) horizontal distance between the supply curves in both graphs.
Country B
Country A
SB
SB
WB
WA
SA
SA
d
e
g
PB
h
a
b
DA
LA
LB
What is the effect of this migration on the welfare of factors other than workers in Country A?
They gain area (a+b)
They lose area (a+b)
They gain area b
They lose area (a+b+c).
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