Question

Draw a labor supply curve and a labor demand curve for the United States. Label the curves LS0 and LD0.

Draw a point at the equilibrium quantity of labor and the equilibrium real wage rate. Label it 1.
Now suppose the United States returns millions of illegal immigrant workers to their home countries.
Draw and label a curve that shows the effect of this return of workers.
Draw a point at the new equilibrium quantity of labor and the equilibrium real wage rate. Label it 2.

Answer 1

The labor market in the United States is represented by supply and demand curves. The return of illegal immigrant workers would lead to a decrease in the labor supply, resulting in a new equilibrium quantity of labor and wage rate.

Step-by-step explanation:

The labor market in the United States can be represented by a labor supply curve (LS0) and a labor demand curve (LD0). The labor supply curve shows the quantity of labor supplied at different wage rates, while the labor demand curve shows the quantity of labor demanded at different wage rates. The point where the two curves intersect represents the equilibrium quantity of labor and the equilibrium real wage rate. Label this point as 1.

If the United States returns millions of illegal immigrant workers to their home countries, it would lead to a decrease in the labor supply. This can be represented by a shift of the labor supply curve to the left. Label this new curve as LS1. The new equilibrium quantity of labor and the equilibrium real wage rate can be represented by point 2, where the labor demand curve (LD0) intersects the new labor supply curve (LS1).