Adjust the graph to show what happens to employment and wages in the eastern state.?WAGELABORSupplyDemandDemandThe original workers in the eastern stateEmployers in the western stateWorkers in the western state employed at the union wageAll workers in the western stateSupplyWhich of the following groups are worse off as a result of the union action in the western state? Check all that apply. 6. Contrasting labor union laws in two statesConsider two hypothetical states that operate under different laws governing labor unions.The following graph shows the labor market in a state in the West. Initially, the market-clearing wage in this state is $8.00 per hour.Now, suppose that the General Assembly in this western state passes a law that makes it easier for workers to join a union. Through collectivebargaining, the union negotiates an hourly wage of $10.00.Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.WAGE (Dollars per hour)161412108200SupplyDemand200 400 600 800 1000 1200 1400 1600LABOR (Thousands of workers)Graph Input ToolMarket for LaborWage(Dollars per hour)Enter $10.00 into the box labeled Wage on the previous graph.Hint: Be sure to pay attention to the units used on the graph.union workers will be employed.At the union wage,Labor Demanded(Thousands ofworkers)2.001,400Labor Supplied(Thousands ofworkers)200The following graph shows the labor market in a state in the East. Suppose the legislature in this state passes strong "right-to-work" laws that make itvery difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Assume that with the exception of thisdifference in legislation, the western and eastern states are extremely similar.The initial position of the graph corresponds to the initial labor market condition in the eastern state before the labor union negotiated the new, higherwage for workers in the western state.Suppose that after the wage goes up in the western state, some workers in the western state lose their jobs and decide to move to the eastern state.

West and East are two states. Both states operate under different laws governing labor unions.…

Consider two hypothetical states that operate under different laws governing labor unions. The following graph shows the labor market in a state in the West. Initially, the market-clearing wage in this state is $8.00 per hour. Now, suppose that the General Assembly in this western state passes a law that makes it easier for workers to join a union. Through collective bargaining, the union negotiates an hourly wage of $10.00.

Consider two hypothetical states that operate under different laws governing labor unions. The following graph shows the labor market in a state in the West. Initially, the market-clearing wage in this state is $8.00 per hour. Now, suppose that the General Assembly in this western state passes a law that makes it easier for workers to join a union. Through collective bargaining, the union negotiates an hourly wage of $10.00.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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