Suppose the local economy experiences an influx of both skilled and unskilled workers, what will happen to prices of goods and services? Group of answer choices   Since this increases the demand for labor, prices and wages both increase.   Since this decreases the supply of labor, prices and wages both decrease.   Since this increases the marginal product of labor, prices and wages both decrease.   Since this increases the supply of labor, prices and wages both decrease.

Principles of Microeconomics
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ISBN:9781305156050
Author:N. Gregory Mankiw
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Chapter18: The Markets For The Factor Of Production
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Suppose the local economy experiences an influx of both skilled and unskilled workers, what will happen to prices of goods and services? Group of answer choices

 

Since this increases the demand for labor, prices and wages both increase.

 

Since this decreases the supply of labor, prices and wages both decrease.

 

Since this increases the marginal product of labor, prices and wages both decrease.

 

Since this increases the supply of labor, prices and wages both decrease.

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