Refer to the following diagram in which Sd is the supply cur

Refer to the following diagram, in which Sd is the supply curve of domestic labor and St is the total labor supply curve including the supplies of illegal immigrant workers. L is measured in thousands of workers S10_-- St 30 70 Consider the market depicted in the diagram. Supporters of illegal immigrants claim thal no domestic workers are willing to do this type of work. Their clains are O untrue, 30,000 domestic workers are currently performing this work true O misleading although no domestic workers are currently performing this work, some domestic workers would take these jobs at wages above $/ O untrue, 40,000 workers are currently performing this work.

Solution

Answer is option c

The presence of illegal immigrants has reduced the market clearing wages, as they have made the supply curve to shift right , thus at market wage of 6, only illegal migrants are hired.

As the minimum wage for domestic workers should be seven, so currently they are not working , but they are ready to work at any wage above 7