A Major Computer Software Company Maintains a Technical Support Center

Multiple Choice

A major computer software company maintains a technical support center in a rural area and is the only employer in this region. Suppose the local labor supply curve shifts leftward due to net migration of workers from the area. What happens to the equilibrium outcome in this labor market?

A) Labor demand shifts rightward; equilibrium wage and employment levels decline.
B) Labor demand shifts rightward; equilibrium wage and employment levels increase.
C) Labor demand curve remains the same; equilibrium wage and employment levels increase.
D) Labor demand curve remains the same, equilibrium wage increases, and employment declines.