Figure 92 Represents the U

Multiple Choice

Figure 9.2 represents the U.S. labor market. Assume that labor and capital are the only factors of production. Also assume the initial supply schedule of labor is denoted by S? and consists entirely of native U.S. workers. The demand schedule of labor is denoted by D?.
Figure 9.2. U.S. Labor Market

-Consider Figure 9.2.If Mexican migration to the United States results in the labor force increasing to 3 workers,denoted by schedule S?,the:

A) Wage rate for native U.S. workers decreases and the payments to U.S. capital owners increases
B) Wage rate for native U.S. workers decreases and the payments to U.S. capital owners decreases
C) Wage rate for native U.S. workers increases and the payments to U.S. capital owners increases
D) Wage rate for native U.S. workers increases and the payments to U.S. capital owners decreases