Answer to Question #298278 in Microeconomics for garg

Question

If the population of India suddenly grew because of a large immigration, what would happen

to wages? What would happen to the rents earned by the owners of land and capital?

Answer 1

Wages would reduce because of the increase in the number of jobless people who are willing to take low wages to do a job.

The rent earned by the owners of land would increase as well as the capital.