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Workers in the new equilibrium are native-born

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Reference no: EM131899063

Suppose the labor and labor supply curves are given by the following equations:

LD = 100 - 4w

Ls = -10 + W

(a) What is the equilibrium wage and level of employment? Show this graphically.

(b) Suppose immigrants enter and compete in this labor market. The new supply function is Ls = -5 + W. What is the new equilibrium wage and level of employment?

(c) How many of the workers in the new equilibrium are native-born?

Reference no: EM131899063

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