8. Links between factor markets Consider the markets for factors of production, such as labor and land, to produce oranges in California in 1935. During this time period-known as the Dust Bowl-major dust storms caused residents of Kansas to migrate west to states like California and Washington. Using the example of the Dust Bowl, illustrate the effects of this influx of migrants on the market for labor in California on the following graph. Assume the marginal product of workers in California remains the same in spite of the migrant workers. WAGE LABOR Market for Labor Supply Demand Demand Supply From the graph, you can deduce that the migration of workers leads the equilibrium wage rate in California to Now consider the effect this change in the labor market has on the land market. In particular, think about the found on the market for agricultural land in California. decrease increase wage change you just Assuming that labor and land are used together in the production of oranges, illustrate this effect on the land market in California on the following graph. RENTAL PRICE LAND Market for Land Supply Demand Demand Supply