The initial position of the graph corresponds to the initial labor market condition in the southern state before the labor union negotiated the new, higher wage for workers in the northern state.Suppose that after the wage goes up in the northern state, some workers in the northern state lose their jobs and decide to move to the southern state.### Graph ExplanationThe graph depicts the relationship between wage and labor in the southern state. It shows:- **Y-axis (Vertical):** Represents Wage.- **X-axis (Horizontal):** Represents Labor.The graph includes:- **Demand Curve (Blue):** This downward sloping line shows the demand for labor. As wages decrease, employers are willing to hire more workers.- **Initial Supply Curve (S₁, Light Gray):** Represents the initial supply of labor in the southern state.- **Adjusted Supply Curve (S₂, Orange):** Represents the new supply of labor after northern state workers move south, indicating an increase in labor supply.### AnalysisThe shift from supply curve S₁ to S₂ indicates an increase in the labor supply in the southern state, potentially due to job loss in the northern state and migration of workers.### Question"Which of the following groups are better off as a result of the union action in the northern state? Check all that apply."- Employers in the northern state- The original workers in the southern state- Workers in the northern state employed at the union wage- All workers in the northern state### Answer Choices- Workers in the northern state employed at the union wage: **Checked**- All workers in the northern state: **Checked** **Labor Market and Unionization: An Analysis**Consider two states that adopt different laws concerning labor unions.**Northern State Labor Market:**The graph illustrates the labor market in a northern state. Initially, the market-clearing wage is $10.00 per hour. The legislature in this state passes laws facilitating union formation, allowing collective bargaining, resulting in a negotiated wage of $12.50 per hour.**Graph Analysis:**- **Axes:** The x-axis represents labor in thousands of workers (ranging from 0 to 1000), while the y-axis represents the wage in dollars per hour (ranging from $0 to $20).- **Lines:** - **Supply (orange line):** Upward sloping, indicating that as wages increase, more labor is supplied. - **Demand (blue line):** Downward sloping, indicating that as wages increase, less labor is demanded.- **Equilibrium:** Initially at $10.00 per hour.- **New Union Wage:** $12.50 per hour, shifting from equilibrium. The graph input tool allows users to explore different scenarios. Currently, it shows:- Wage: $2.50 (to be adjusted)- Labor Demanded: 875 thousand workers- Labor Supplied: 125 thousand workers**Instructions:** Enter $12.50 into the Wage box on the graph.**Hint:** Pay attention to units on the graph. At the union wage, 375,000 union workers will be employed.**Southern State Labor Market:**In contrast, the southern state has "right-to-work" laws, keeping the wage at the market-clearing value of $10.00 per hour. The graph is assumed to be similar to the northern state, except for these legislative differences.**Conclusion:**This comparative analysis of labor markets highlights how union-supportive legislation impacts wages and employment levels in different states.

The demand and supply of labor refers to the interaction between employers who demand labor and…

Answered: The initial position of the graph…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose the price of manufactured goods is 2, price of food goods is 5. The production function for Qm=Lm^0.60 and QF=5*LF^0.60. The total number of workers, L, is 4986. What is the number of workers in the manufacturing sector?
The following is the labor market situation in Country XXX. “There is an increase in the numbers of entrant into the labor market in Country XXX around October as the new graduates who have just finished their studies are looking for jobs. Stiff competition added by the absence of an agency which can help these graduates find suitable jobs make it difficult for them to grab a job. At the same time, the government also announced that it has reduced the unemployment benefits. Based on the above labor market situation, explain how the characteristics of this market affect the natural rate of unemployment in Country XXX.
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Consider a company operating in a competitive market. The company sells units of output and receives a price of $30 per unit, and pays a daily market wage of $285 to each worker it employs. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Value of the Marginal Product of Labor Labor Output Marginal Product of Labor (Number of workers) (Units of output) (Units of output) (Dollars) WAGE (Dollars per worker) 500 450 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) 400 Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product for the first worker should be plotted with a horizontal coordinate…
Full answer to question a and b
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MCQ 1 Consider a competitive labour market in which the current equilibrium wage is £10 per hour. If the government imposes a minimum wage of £8 per hour, in this market we would expect to observe: A a fall in the wage and an increase in the demand for labour a rise in the wage and a fall in the demand for labour C a rise in the wage, but the change in the demand for labour can't be detemined from the information provided D no change in the wage and no change in the demand for labour a fall in the wage, but the change in the demand for labour can't be determined from the information provided I do not want to answer this question. B
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