In Econland, the demand for low-skilled workers is represented byw= 30 - 0.1E (whereEis employment in millions andwis wage.) Suppose that there are 70 million low-skilled workers in Econland, and that they supply labor perfectly inelastically (Hint: perfectly inelastic supply means that even if wage is $0.01, all workers with perfectly inelastic supply are willing to work.) Also suppose that if Econland opened its borders to immigration, 18 million low-skilled immigrant workers would enter Econland and supply their labor perfectly inelastically.

What is the change in low-skill worker wage in Econland when borders are opened to immigration?(Note: a positive number implies low-skilled wage went up after immigration is allowed, and a negative number implies low-skilled wage went down after immigration is allowed)

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Scenario 1

Let market demand for domestic workers be represented byED= 1,000 - 50wwhereEDis domestic labor demanded andwis the hourly wage.