Question

Suppose that workers immigrate to Colorado from California. Which of the following correctly describes what would happen in the market for labor in Colorado? The equilibrium wage would increase, and the quantity of labor hired in the market would decrease. The equilibrium wage would decrease, and the quantity of labor hired in the market would decrease. The equilibrium wage would decrease, and the quantity of labor hired in the market would increase. The equilibrium wage would increase, and the quantity of tabor hired in the market would increase.

Answer 1

In the market for labor in Colorado, if workers immigrate from California, the equilibrium wage would decrease, and the quantity of labor hired in the market would increase.

Step-by-step explanation:

In the market for labor in Colorado, if workers immigrate from California, the equilibrium wage would decrease, and the quantity of labor hired in the market would increase.

This is because an increase in the supply of labor, due to immigration, will cause the equilibrium wage to decrease. At the same time, the increase in labor supply will lead to an increase in the quantity of labor hired in the market.