Which of the following best describes what could happen in the labor market for unskilled day
laborers if a slowdown in the economies of the United States and Mexico increased the supply of
unskilled day laborers in the United States, while at the same time decreasing the demand for day
laborers in the United States?
i. The equilibrium quantity of day laborers hired in the United States could decrease, while the
equilibrium wage for day laborers in the United States could increase.
ii. The equilibrium quantity of day laborers hired in the United States could increase, while the
equilibrium wage for day laborers in the United States could decrease.
iii. The equilibrium quantity of day laborers hired in the United States could remain unchanged, while
the equilibrium wage for day laborers in the United States could increase.
iv. The equilibrium quantity of day laborers hired in the United States could decrease, while the
equilibrium wage for day laborers in the United States could decrease.
Oonly i. is possible
only ii. is possible
only iii. is possible
only iv. is possible
both ii. and iv. are possible