Professional Documents
Culture Documents
Determination
Introduction
W*
Q*
Quantity (Labor)
Lesson Nine part 1 7
Demand Shift
S
W’
Wage Rate
W*
D’
Q* Q’
Quantity (Labor)
Lesson Nine part 1 8
Supply Shift
S S’
Wage Rate
W*
W’’
Q* Q’’
Quantity (Labor)
Lesson Nine part 1 9
Monopoly
S
W**
wage rate
W*
Q** Q*
Quantity of labor
Lesson Nine part 1 10
Monopsony
MRC
S
Wage rate (dollars)
W*
W**
Q** Q* Q
Quantity of labor
Lesson Nine part 1 11
That’s The Overview
Substitution
Effect
Dominates
Immigration
✦ A final important determinant of
labor supply is immigration.
✦ In recent years, this has become a
potent political issue for many
reasons, not perhaps the least of
which is that as immigration
increases, every thing else being
equal, wages tend to decline.