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Consider two labor markets for graphic designers. Market X is a small town where one large advertising agency is the primary employer for this role. Market Y is a major city with hundreds of companies, from small startups to large corporations, all competing to hire graphic designers. The parameter η (eta) quantifies the sensitivity of labor supply to the wage offered by an individual firm. Which statement correctly evaluates the likely relationship between the η values in these two markets?
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Consider two labor markets for graphic designers. Market X is a small town where one large advertising agency is the primary employer for this role. Market Y is a major city with hundreds of companies, from small startups to large corporations, all competing to hire graphic designers. The parameter η (eta) quantifies the sensitivity of labor supply to the wage offered by an individual firm. Which statement correctly evaluates the likely relationship between the η values in these two markets?