How does given explain the difference in behavior

Reference no: EM132192615

Question: Further, Growers who can afford it have already begun raising worker pay well beyond minimum wage. But the raises and new perks have not tempted native-born Americans to leave their day jobs for the fields. Nine in 10 agriculture workers in California are still foreign born. Instead, companies growing high-value crops, like Cabernet Sauvignon grapes in Napa, are luring employees from fields in places like Stockton that produce cheaper wine grapes or less profitable fruits and vegetables.

(a) Demonstrate and explain why native-born Americans have responded to the increasing wage rate by working fewer hours in the field. Be sure to consider all possible effects of the wage increase.

(b) What does the difference between your answers to (a) and (b) depend on? How does this explain the difference in behavior? Explain.

Reference no: EM132192615

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