Consider two provinces that adopt different laws concerning labour unions. The following graph shows the labour market in a province in the West. Initially, the market-dlearing wage is $10 per hour. Suppose that the legislature in this western province passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $12 per hour. Use the black point (plus symbol) to show how many union workers will be employed at the $12 wage. (Hint: Be sure to place the point on the appropriate curve.) Labour Market in the West 20 18 Union Negotiations 16 14 Supply Union Wage 12 10 Demand 10 12 LABOUR (Millions of workers) 14 16 18 20 WAGE(Dollars)
Consider two provinces that adopt different laws concerning labour unions. The following graph shows the labour market in a province in the West. Initially, the market-dlearing wage is $10 per hour. Suppose that the legislature in this western province passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $12 per hour. Use the black point (plus symbol) to show how many union workers will be employed at the $12 wage. (Hint: Be sure to place the point on the appropriate curve.) Labour Market in the West 20 18 Union Negotiations 16 14 Supply Union Wage 12 10 Demand 10 12 LABOUR (Millions of workers) 14 16 18 20 WAGE(Dollars)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
3. Contrasting labour union laws in two provinces
Consider two provinces that adopt different laws concerning labour unions.
NOTE: MAKE SURE TO PROPERLY ADJUST BOTH GRAPSH. MAKE SURE YOU SHOW CLEARLY WHAT NEEDS TO BE ADJUSTED!
Transcribed Image Text:Consider two provinces that adopt different laws concerning labour unions.
The following graph shows the labour market in a province in the West. Initially, the market-clearing wage is $10 per hour. Suppose that the
legislature in this western province passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a
wage of $12 per hour.
Use the black point (plus symbol) to show how many union workers will be employed at the $12 wage. (Hint: Be sure to place the point on the
appropriate curve.)
Labour Market in the West
20
18
Union Negotiations
16
14
Supply
Union Wage
12
10
4
2
Demand
10
12
14
16
18
20
LABOUR (Millions of workers)
WAGE(Dollars)
Transcribed Image Text:The following graph shows the labour market in a province in the East. The legislature in this province passes "strong right-to-work laws" that make it
very difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Except for this difference in legislation, the two
provinces are very similar.
The initial position of the graph corresponds to the initial labour market condition in the eastern province before the labour union negotiated the new,
higher wage for workers in the western province.
Adjust the graph to show what happens to employment and wages in the eastern province after some workers in the western province lose their jobs
and decide to move to the eastern province.
Labour Market in the East
Supply
Demand
Supply
Demand
LABOUR
WAGE
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education