MGEB06 –Chapter 3 Tutorial 1 Answer Key
This answer key aims at helping you to check your answer and you WILL NOT receive full
credit if you do not show your work and/or provide explanation in your assignments and
•There will be an increase in labour supply in the low-skilled labour market:
⇒ (W/P)low-skilled to (W/P)1low-skillled.
•The labour supply in the high-skilled labour market remains unchanged:
⇒ (W/P)high-skilled remains unchanged at (W/P)0hihg-skilled.
Low-skilled labour market High-skilled labour Market
(W/P)low-skilled LS0low-skilled LS1low-skilled (W/P)high-skilled
L0LS L1LS L0HS
Chapter 3 Tutorial 1 Answer Key