Answer :
Assuming that the number of workers who can enter the country legally to take seasonal jobs has been slashed in half, then because of the shift in the labor supply curve, wages in the impacted industries are probably going to increase.
Elaborate on shifts in supply curve.
Rather than the cost of the commodity or service, a shift in a supply curve results from a change in an underlying condition of supply, such as the price of raw materials.
Assuming pricing remains constant, a shift to the right represents an increase in supply, which may be brought on by favorable supply variables such as :
- more readily accessible labor, raw materials,
- subsidies for goods and services,
- lower taxes,
- unusually favourable weather, and others.
A left shift in the supply curve indicates a reduction in supplies. If the price remains constant, the following factors could contribute to a change in supply to the left:
- fewer raw materials being accessible;
- more expensive raw materials;
- a decrease in the supply of labor;
- taxes on goods or services;
- inclement weather or other disruptive natural events.
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