The Figure Given Below Represents the Effects in the Labor

question 22

Multiple Choice

The figure given below represents the effects in the labor markets due to migration. Here the world has been divided into a high-income "North" (left panel) and a low-income "South" (right panel) . D_n and S_n are the labor demand and the labor supply curves in North. D_s and (S_r + S_mig) are the labor demand and pre-migration labor supply curves in South. S_r is the post-migration labor supply curve in South. The value c is the cost of migrating. When migration is not allowed, workers in North earn _____ per hour and workers in South earn _____ per hour.

• A)$6.75; $4.25
• B)$8.00; $4.25
• C)$6.75; $3.00
• D)$8.00; $3.00

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Definitions:

Beef

Meat derived from cattle, recognized for its nutritional value and used in various cuisines worldwide.

Equilibrium Price

The cost at which the amount of a product or service sought by consumers matches the amount available from suppliers.

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services provided matches the amount that is demanded.

Substitutes

Goods or services that can replace each other in usage, such that an increase in the price of one leads to an increase in demand for the other.