What happens to the labor supply curves in both countries when Mexican workers leave Mexico and move to the United States?
A)Labor supply decreases in Mexico and decreases in the United States.
B)Labor supply increases in the United States and increases in Mexico.
C)Labor supply increases in the United States and decreases in Mexico.
D)Labor supply increases in Mexico and decreases in United States.

Question

Quizplus · Accepted Answer

When Mexican workers move from Mexico to the United States, the labor supply decreases in Mexico because there are fewer workers available. Conversely, the labor supply increases in the United States as these workers add to the pool of labor available in the country.

What Happens to the Labor Supply Curves in Both Countries