The following graph illustrates the labor market for the state in the West. The government in this state passes a strong "right-to-work" law that makes it much more challenging for unions to organize workers, so the wage is always equal to the market-clearing value. With the lone exception of this legal difference, assume the two states to be extremely similar. Initially, the graph corresponds to the labor market conditions in the western state prior to the labor union negotiating the new, higher wage for eastern state workers. Adjust the graph to show what happens to employment and wages in the western state after some workers in the eastern state lose their jobs and choose to move to the western state. WAGE Labor Market in the West LABOR Supply Demand Demand D Supply

The following graph illustrates the labor market for the state in the West. The government in this state passes a strong "right-to-work" law that makes it much more challenging for unions to organize workers, so the wage is always equal to the market-clearing value. With the lone exception of this legal difference, assume the two states to be extremely similar. Initially, the graph corresponds to the labor market conditions in the western state prior to the labor union negotiating the new, higher wage for eastern state workers. Adjust the graph to show what happens to employment and wages in the western state after some workers in the eastern state lose their jobs and choose to move to the western state. WAGE Labor Market in the West LABOR Supply Demand Demand D Supply

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 2SCQ: Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a...

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Question

The following graph illustrates the labor market for the state in the West. The government in this state passes a
strong "right-to-work" law that makes it much more challenging for unions to organize workers, so the wage is
always equal to the market-clearing value. With the lone exception of this legal difference, assume the two
states to be extremely similar.
Initially, the graph corresponds to the labor market conditions in the western state prior to the labor union
negotiating the new, higher wage for eastern state workers.
Adjust the graph to show what happens to employment and wages in the western state after some workers in
the eastern state lose their jobs and choose to move to the western state.
WAGE
Labor Market in the West
I
LABOR
Supply
Demand
Demand
Supply
(?)

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