Consider an economy that consists of two regions - the East and West. The elasticity of labor demand in each region is -0.5. The economy-wide labor supply is perfectly inelastic. The labor market is initially in an economy wide equilibrium, with 600,000 people employed in the East and 400,000 in the West at the wage of $15 per hour. Suddenly, 20,000 people immigrate from abroad and initially settle in the West. They possess the same skills as the native residents and also supply their labor inelastically.