Let market demand for domestic workers be represented by Ed = 1000 - 50w where Ed is domestic labor demanded and w is the hourly wage. Suppose the domestic labor supply is represented by Es = 115w - 821. Now suppose that 106 immigrants that are perfect substitutes for native workers enter the market and their labor supply is perfectly inelastic. What is the equilibrium wage for all workers in this market after the immigrants enter?

Let market demand for domestic workers be represented by Ed = 1000 - 50w where Ed is domestic labor demanded and w is the hourly wage. Suppose the domestic labor supply is represented by Es = 115w - 821. Now suppose that 106 immigrants that are perfect substitutes for native workers enter the market and their labor supply is perfectly inelastic. What is the equilibrium wage for all workers in this market after the immigrants enter?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Labor Markets

Section: Chapter Questions

Problem 4SQ

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