1. Lectures in Microeconomics-Charles W. Upton Labor Demand and Supply and Free Trade

2. Labor Demand and Supply S wowo NoNo wfwf The market for workers.

3. Labor Demand and Supply and Free Trade Labor Demand and Supply S wowo NoNo wfwf The market for workers. Initially no foreign workers are allowed immigrate.

4. Labor Demand and Supply and Free Trade Labor Demand and Supply S wowo NoNo wfwf The market for workers. Initially no foreign workers are allowed immigrate. The “immigration” could occur either by actual immigration or allowing imports.

5. Labor Demand and Supply and Free Trade Labor Demand and Supply S wowo NoNo wfwf The market for workers. Initially no foreign workers are allowed immigrate. The “immigration” could occur either by actual immigration or allowing imports. In either event, wages would drop to w f.

6. Labor Demand and Supply and Free Trade Consumer and Producer Surplus D S wowo NoNo A wfwf B C Let’s look at Consumer and Producer Surplus w/o immigration

7. Labor Demand and Supply and Free Trade Consumer and Producer Surplus D S wowo NoNo A wfwf B C Let’s look at Consumer and Producer Surplus w/o immigration The firms get A; the workers get B + C

8. Labor Demand and Supply and Free Trade Allowing Foreign Workers D S wowo NoNo wfwf When we allow foreign labor, wages and the number of Americans working declines

9. Labor Demand and Supply and Free Trade Allowing Foreign Workers D S wowo NoNo wfwf When we allow foreign labor, wages and the number of Americans working declines Fewer Americans are working and those working are making less

10. Labor Demand and Supply and Free Trade Allowing Foreign Workers D S wowo NoNo wfwf When we allow foreign labor, wages and the number of Americans working declines Fewer Americans are working and those working are making less Is this a good deal?

11. Labor Demand and Supply and Free Trade Allowing Foreign Workers D S wowo NoNo wfwf When we allow foreign labor, wages and the number of Americans working declines Fewer Americans are working and those working are making less Is this a good deal? Actually yes. Read on.

12. Labor Demand and Supply and Free Trade Consumer and Producer Surplus D S wowo NoNo A wfwf B C NdNd NtNt DE Firms get A+B+D+E Workers get C B

13. Labor Demand and Supply and Free Trade Consumer and Producer Surplus D S wowo NoNo A wfwf B C NdNd NtNt DE Firms get A+B+D+E Workers get C B Workers go from B+C to C

14. Labor Demand and Supply and Free Trade Consumer and Producer Surplus D S wowo NoNo A wfwf B C NdNd NtNt DE Firms get A+B+D+E Workers get C B Workers go from B+C to C Firms go from A to A +B +D +E

15. Labor Demand and Supply and Free Trade Consumer and Producer Surplus D S wowo NoNo A wfwf B C NdNd NtNt DE B The total gain is D +E

16. Labor Demand and Supply and Free Trade End ©2006 Charles W. Upton