The Figure Given Below Represents the Effects in the Labor

question 38

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. The world's net gain due to migration is represented by the area:

• A)(a + b).
• B)(e + f).
• C)(a + f).
• D)(b + f).

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where market supply and demand balance.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in a market, resulting in no surplus or shortage.

Equilibrium Quantity

The level of goods or services on offer and needed at the market's equilibrium price.

Steamed Milk

Milk that has been heated and aerated with steam, typically used in coffee drinks like lattes and cappuccinos.