Relative Demand and Supply for High-Skilled/Low-Skilled Labor In panel (a), we show the relative demand and supply for skilled labor at Home, H/L, depending on the relative wage, W_H/W_L. The equilibrium relative wage at Home is determined at A. In panel (b), we show the relative demand and supply for skilled labor in Foreign, H^*/L^*, depending on the relative wage,

. The Foreign equilibrium is at point A^*.