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
c) More students studying full-time

Answer 1

Answer on Question#41658 - Economics - Microeconomics

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

c) More students studying full-time

Answer:

Initial equilibrium situation

a) An increase in immigrants- will increase quantity of labor and decrease relative wage

b) A reduction in wage rates - will shift supply to the right

c) More women entering the labour market – will decrease average real wage

d) More students studying full-time - will decrease average real wage