Consider two states that adopt different laws concerning labor unions.The following graph shows the labor market in a state in the North. Initially, the market-clearing wage there is $8.00 per hour.Suppose that the legislature in this northern state passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $10.00 per hour. At the union wage, how many union workers will be employed? Graph Input Tool(?Market for Labor16I Wage(Dollars per hour)8.0014SupplyLabor Demanded(Thousands of workers)Labor Supplied(Thousands of workers)8008001210Demand200400600 800 1000 1200 1400 1600LABOR (Thousands of workers)WAGE (Dollars per hour) Graph Input ToolMarket for Labor16I Wage(Dollars per hour)10.00Supply14Labor Demanded(Thousands of workers)Labor Supplied(Thousands of workers)6001,00012108Demand2004006008001000 1200 1400 1600LABOR (Thousands of workers)WAGE (Dollars per hour)

Wage is the compensation or reward for labor’s work. The supply of labor is inversely related to…

Answered: Graph Input Tool (? Market for Labor 16…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider two states that adopt different laws concerning labor unions.

The following graph shows the labor market in a state in the North. Initially, the market-clearing wage there is $8.00 per hour.

Suppose that the legislature in this northern state passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $10.00 per hour.

At the union wage, how many union workers will be employed?

Graph Input Tool
(?
Market for Labor
16
I Wage
(Dollars per hour)
8.00
14
Supply
Labor Demanded
(Thousands of workers)
Labor Supplied
(Thousands of workers)
800
800
12
10
Demand
200
400
600 800 1000 1200 1400 1600
LABOR (Thousands of workers)
WAGE (Dollars per hour)

Graph Input Tool
Market for Labor
16
I Wage
(Dollars per hour)
10.00
Supply
14
Labor Demanded
(Thousands of workers)
Labor Supplied
(Thousands of workers)
600
1,000
12
10
8
Demand
200
400
600
800
1000 1200 1400 1600
LABOR (Thousands of workers)
WAGE (Dollars per hour)

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