Price of Labor
(Wage per hour)
S
before immigration
S
after immigration
E3
૩
WWW
E1
E2
0
E1
E2
Q1 Q2 Q3
Labor Force
before immigration
D
after immigration
Labor Force
after immigration
before immigration
LF, LF₂
Quantity of Labor
(in millions of workers)



Determine the short- and long-run effects of immigration.

Consider the graph of a labor market before and after an influx of immigrant workers.

What effect does the influx have on the quantity demanded of workers in the short run?



a.)
The quantity demanded remains the same.


b.)
The quantity demanded decreases from Q subscript E 1 end subscript to Q subscript E 2 end subscript.


c.)
The quantity demanded decreases from Q subscript E 3 end subscript to Q subscript E 1 end subscript.


d.)
The quantity demanded increases from Q subscript E 1 end subscript to Q subscript E 2 end subscript.