Table illustrates the hypothetical demand and supply schedules of labor in the United States. Assume that labor and capital are the only two factors of production. On graph paper, plot these schedules.

a. Without immigration, suppose the labor force in the United States is denoted by schedule S0. The equilibrium wage rate is $ _____; payments to native U.S. workers total $ _____, while payments to U.S. capital owners equal $ _____.

b. Suppose immigration from Hong Kong results in an overall increase in the U.S. labor force to S1. Wages would rise/fall to $ _____payments to native U.S. workers would total $_____, and payments to Hong Kong immigrants would total $_____. U.S. owners of capital would receive payments of $_____.

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DEMAND AND SUPPLY OF LABOR Quantity Quantity Quantity Wage ( Demanded Suppliedo Supplied, 0 4 4 4 4