Multiple Choice
The figure given below represents the effects in the labor markets due to migration. Here the world has been divided into a high-income "North" (left panel) and a low-income "South" (right panel) . Dn and Sn are the labor demand and the labor supply curves in North. Ds and (Sr + Smig) are the labor demand and pre-migration labor supply curves in South. Sr is the post-migration labor supply curve in South. The value c is the cost of migrating. After the migration, the native employees in North:
A) lose welfare given by area 'a'.
B) gain welfare given by area (a+b) .
C) lose welfare given by area (a+b) .
D) lose welfare given by area (e + f) .
Correct Answer:

Verified
Correct Answer:
Verified
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