Question

Suppose that some of the immigrants to the country decide to set up businesses, rather than become employees. Explain how you expect this to affect the wage-setting curve, the price-setting curve, and the labour market equilibrium.

Answer 1

Answer:

The impact of immigrants to a country where they setup their own business can;

Wage-setting curve

Wages of employees can increase, As demand of labor increases

Price-setting curve

As the wages will increase so firm's Cost of production increases. Less profitable for the company.

Labor market equilibrium.

Quantity of Labor will be decreased and Wages will increase.

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