Exhibit 26-7 ​            Market a                                Market B

Multiple Choice

Exhibit 26-7 ​

           Market A                                Market B
Refer to Exhibit 26-7. The exhibit shows two markets in which labor of identical skills is employed. Assume that both markets are in equilibrium with Q₁ and Q₂ quantities of labor employed at the respective prices of $4 and $6 per unit. If labor is costlessly mobile between the markets, which of the following pairs of shifts of the respective labor supply curves is to be expected?

A) S₁ to S₅ and S₂ to S₆
B) S₁ to S₅ and S₂ to S₄
C) S₁ to S₃ and S₂ to S₆
D) S₁ to S₃ and S₂ to S₄