The following table summarizes the market for labor in an occupation. “Demand”

is the number (in thousands) of employees firms would be interested in hiring at particular wages. “Domestic supply” is the number (in thousands) of native workers who are interested in working in the occupation at particular wages, and

“immigrant supply” is the number (in thousands) of immigrants who are interested in working at particular wages.

a. Graph the following curves for this labor market: demand for labor, domestic supply, and total supply of workers.

b. What is the equilibrium wage rate before immigration? How many workers would be hired?

c. What is the equilibrium wage rate after immigration? How many workers would be hired? How many domestic workers would be hired? How many immigrant workers would be hired?

d. Comparing your answers in parts b and

c, has immigration caused a change in the number of domestic workers hired? What was the change, if any?
Why did the change, if any, occur?

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Wage ($) Demand 30 29 28 27 26 25 3 4 5 6 7 8 9 10 24 23 Domestic Immigrant Supply Supply 22 23 24 25 26 27 28 29 4 4 4 4 4 4 4 4