Answer the following questions based on the diagram below which shows labour demand and labour supply of a country in the short-run. The labour supply curve for domestic workers is SN and the labour supply curve including migrants is S'M. AD is the labour demand curve. Wage (W) S' A Wo Wi D (MRP = VMP) Quantity of Labour (L) N м a. What is the total income for domestic workers before and after migration? What is the net loss? b. What is the total gain acquired by capitalists before and after migration? What is the net gain?

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ChapterST8: Earnings Differences Between Men And Women
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labour economics

Answer the following questions based on the diagram below which shows labour
demand and labour supply of a country in the short-run. The labour supply curve for
domestic workers is SN and the labour supply curve including migrants is S'M. AD
is the labour demand curve.
Wage (W) |
S
S'
A
Wo
W1
F
D (MRP = VMP)
Quantity of Labour (L)
N
M
a. What is the total income for domestic workers before and after migration?
What is the net loss?
b. What is the total gain acquired by capitalists before and after migration?
What is the net gain?
Transcribed Image Text:Answer the following questions based on the diagram below which shows labour demand and labour supply of a country in the short-run. The labour supply curve for domestic workers is SN and the labour supply curve including migrants is S'M. AD is the labour demand curve. Wage (W) | S S' A Wo W1 F D (MRP = VMP) Quantity of Labour (L) N M a. What is the total income for domestic workers before and after migration? What is the net loss? b. What is the total gain acquired by capitalists before and after migration? What is the net gain?
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