The U.S. terminated its role in the slave trade in the early 1800s. What is the best assessment of what would have happened had the U.S. not ended the slave trade?
a. The price of slaves would be lower and the wages of free workers would be lower.
b. The price of slaves would be higher and the quantity of free workers would be lower.
c. The price of slaves would be lower and the wages of free workers would be higher.
d. The quantity of slaves would be higher and the quantity of free workers would be higher.
e. The quantity of slaves would be lower and the wages of free workers would be lower.
a. The price of slaves would be lower and the wages of free workers would be lower. The supply for slaves would shift out, thus lowering the price of slaves and increasing the quantity of slaves. Because slaves and free workers are substitutes, the demand curve for free workers would decrease, thus decreasing both the price and quantity of free labor.
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Car manufacturers who use robots to do certain jobs on the assembly line are trying to increase supply by
a. lowering input costs b. taking advantage of government regulation c. applying new technology d. increasing the number of producers
The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. The marginal private cost when output equals 2 tons of paper per week equals
A) $50 per ton B) $100 per ton. C) $150 per ton. D) None of the above answers is correct.