Question

Use a graphical illustration to describe briefly what the influence of each of the following would be on the market supply of labour:
(a) An increase in immigrants
(b) A reduction in wage rates
(c) More women entering the labour market
(d) More students studying full-time

Answer 1

Answer on Question #41570, Economics, Microeconomics

(a) An increase in immigrants will increase the market supply of labour, because the amount of potential workers will increase.

(b) A reduction in wage rates the quantity supplied will decrease, but the supply will not change.

(c) More women entering the labour market will increase the supply of labour, if they didn't work before.

(d) More students studying full-time will cause the supply of labour to decrease, as less students will have possibility to work after classes.

Illustration of supply increase for parts (a) and (c)

Quantity of Labor

Illustration of supply decrease for part (d):

Illustration of quantity supplied decrease for part (b):