Suppose there is immigration of workers to another country from a source country.

i. Explain in which direction the labour supply curve change for the source country?

ii. Explain in which direction the labour demand curve change for the source country?

iii. What will be the impact on the wage rate for the workers in the source country if

- elasticity of supply of workers exceeds the elasticiy of demand for workers?

- elasticity of supply of workers exceeds the elasticiy of demand for workers?

Explain each scenario in few sentences for full credits. Grades will depend upon the clarity of explanation.

iv. Based on your anwers in part ii:between skilled and non skilled worker - for whom do you think the wage rate will decrease for the source country and why?