In some markets plumbers have a choice of joining unions or working as nonunion plumbers. The total short-run supply of plumbers is perfectly inelastic at 500 workers per day. The demands for nonunionized and unionized plumbers, respectively, are: WNU = 30-0.04L and WU=30-0.10L. The wage rate is W in $/hr. and the number of workers per day is L. (Pindyck) a. Determine the total demand for plumbers. b. Calculate the total market wag

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

In some markets plumbers have a choice of joining unions or working as nonunion
plumbers. The total short-run supply of plumbers is perfectly inelastic at 500 workers per day.
The demands for nonunionized and unionized plumbers, respectively, are: WNU = 30-0.04L and
WU=30-0.10L. The wage rate is W in $/hr. and the number of workers per day is L. (Pindyck)
a. Determine the total demand for plumbers.
b. Calculate the total market wage rate of plumbers assuming that unionized and
nonunionized plumbers get the same wage rate. 
c. If the unionized workers succeeded in getting their wage increased to $20.00 per
hour, how many unionized workers would lose their jobs? 
d. If the unionized workers in (c) who lost their jobs take jobs as non-unionized
workers, how much and in what direction would non-unionized wages change?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Economic Impact of Union
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
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)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
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-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education