Pierre is a software engineer, working in a heavily polluted city in northern France. He does not like the pollution, but the pay is good and housing is relatively cheap. He is considering taking a job with a different software company in Cannes, a lovely seaside community in southern France with very low pollution levels. Unfortunately, he discovers that housing is very expensive in Cannes; many people wish to live there and this has bid up the price of housing. Pierre tells his potential employer in Cannes that he will need a higher wage to compensate for the higher cost of living. Is Pierre justified in making this request? Why or why not?