Answer:
c. The equilibrium wage will rise, and the equilibrium quantity of labor will fall
Explanation:
Because of the emigration of workers from the Northern Minnesota to Southern Canada, the equilibrium wage rates will rise and quantity of labor will fall.
This happens because the workers that left have already created a vacuum that will be eager to be filled by their employers who will be willing to increase wages for incoming workers to serve two purposes:
1. To entice them to work for the company and fill the vacuum
2. To try to make sure they stay and not leave another vacuum.
The reason the quantity of labour will fall is because of that vacuum created by the departed workers. It's this drop in labor that will make the equilibrium wages to increase.
Answer:
The correct option is C
Explanation:
The equilibrium market wage rate is at the intersection of the supply and demand for labour. Employees are hired up to the point where the extra cost of hiring an employee is equal to the extra sales revenue from selling their output, while labor market equilibrium is the balanced situation where the supply of potential employees is equal to the demand
