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The Figure Given Below Represents the Effects in the Labor

Question 35

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. 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) . D<sub>n</sub> and S<sub>n</sub> are the labor demand and the labor supply curves in North. D<sub>s</sub> and (S<sub>r</sub> + S<sub>mig</sub>)  are the labor demand and pre-migration labor supply curves in South. S<sub>r</sub> is the post-migration labor supply curve in South. The value c is the cost of migrating.   As a result of migration, the employers in North: A) lose $131.25 million. B) gain $31.25 million. C) gain $162.5 million. D) lose $100 million. As a result of migration, the employers in North:


A) lose $131.25 million.
B) gain $31.25 million.
C) gain $162.5 million.
D) lose $100 million.

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