Question

Imagine a scenario in which the market for labor in a particular area is in equilibrium, and then there is a sudden migration out of an area. In that case, equilibrium wage __________and the quantity of workers employed __________.

Answer 1

The correct answer is letter "D": increases; decreases.

Step-by-step explanation:

Migrations out of a determined area will cause the labor hand in that region to decrease. As a result, there will be lower demand for job positions. This causes wages to increase. In an attempt to attract qualified employees from a reduced pool of resources, the company raises the wages to incentivize changes from work in the market. The latter will increase the equilibrium wage point.