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Montano1993 [528]
3 years ago
13

When immigration adds to the size of the domestic labor pool, which is likely to occur? minimum wage increases. wages decrease p

roductivity increases consumption decreases
Business
2 answers:
Grace [21]3 years ago
8 0

Answer:

wages decrease

Explanation:

Labor is a factor of production and has a price like all other inputs. In the economy, labor is a commodity whose price is determined by the forces of demand and supply.  When there is an oversupply of labor, its equilibrium price will decrease.

The equilibrium price of labor is the prevailing wage rate, where  demand matches supply. When immigration adds to the labor force, it means an additional supply of able and willing workers in the markets. There will be many sellers or workers offering to supply labor services to the existing job openings. As a result, the price of labor will reduce as buyers or employers can lower the wage rate and still get the labor services they require.

iren2701 [21]3 years ago
7 0
The answer should be wages decreases
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