Suppose the labor and labor supply curves are given by the following equations:
LD = 100 - 4w
Ls = -10 + W
(a) What is the equilibrium wage and level of employment? Show this graphically.
(b) Suppose immigrants enter and compete in this labor market. The new supply function is Ls = -5 + W. What is the new equilibrium wage and level of employment?
(c) How many of the workers in the new equilibrium are native-born?