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38. Assumptions: 1) Employers in this market are willing and able to ignore mini

ID: 1100611 • Letter: 3

Question

38. Assumptions: 1) Employers in this market are willing and able to ignore minimum wage laws; 2) Sd represents the supply of domestically-born (and legal immigrant) workers; 3) St represents the total supply of workers in this labor market (Sd plus illegal immigrants); and 4) Unless otherwise stated, illegal immigration is not effectively blocked by the government.

Refer to the above figure. How many illegal immigrant workers will be hired at equilibrium?

a. 200,000

b. 250,000

c. 350,000

d. 450,000

Explanation / Answer

37. b. 250,000

38. a. 200,000

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