6. Contrasting labor union laws in two statesConsider two hypothetical states that operate under different laws governing labor unions.The following graph shows the labor market in a state in the West. Initially, the market-clearing wage in this state is $8.00 per hour.Now, suppose that the General Assembly in this western state passes a law that makes it easier for workers to join a union. Through collectivebargaining, the union negotiates an hourly wage of $10.00.Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.WAGE (Dollars per hour)16141210842SupplyDemandGraph Input ToolMarket for LaborWage(Dollars per hour)Labor Demanded(Thousands ofworkers)2.001,400Labor Supplied(Thousands ofworkers)?200 WAGELABORDemandWorkers in the western state employed at the union wageWhich of the following groups are better off as a result of the union action in the western state? Check all that apply.Workers who find new jobs in the eastern stateEmployers in the western stateAll workers in the western stateDemanuSupply

Unemployed is the difference between number of workers supplied and number of workers demanded at…

WAGE LABOR Demand Workers in the western state employed at the union wage Which of the following groups are better off as a result of the union action in the western state? Check all that apply. Workers who find new jobs in the eastern state O Employers in the western state Dellanu Supply

WAGE LABOR Demand Workers in the western state employed at the union wage Which of the following groups are better off as a result of the union action in the western state? Check all that apply. Workers who find new jobs in the eastern state O Employers in the western state Dellanu 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 3SCQ: Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in...

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Question

6. Contrasting labor union laws in two states
Consider two hypothetical states that operate under different laws governing labor unions.
The following graph shows the labor market in a state in the West. Initially, the market-clearing wage in this state is $8.00 per hour.
Now, suppose that the General Assembly in this western state passes a law that makes it easier for workers to join a union. Through collective
bargaining, the union negotiates an hourly wage of $10.00.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
WAGE (Dollars per hour)
16
14
12
10
8
4
2
Supply
Demand
Graph Input Tool
Market for Labor
Wage
(Dollars per hour)
Labor Demanded
(Thousands of
workers)
2.00
1,400
Labor Supplied
(Thousands of
workers)
?
200

WAGE
LABOR
Demand
Workers in the western state employed at the union wage
Which of the following groups are better off as a result of the union action in the western state? Check all that apply.
Workers who find new jobs in the eastern state
Employers in the western state
All workers in the western state
Demanu
Supply

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6. Contrasting labor union laws in two states Consider two states that adopt different laws conceming labor unions. The following graph shows the labor market in a state in the North. Initlally, the market-dearing wage there is $8.00 per hour. Suppose that the legislature in this northem state passes laws that make it easy for workers to join a union. Through collective bargalning, the union negotiates a wage of $10.00 per hour. Use the graph Input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Graph Input Tool Market for Labor 16 Wage (Dollars per hour) 14 Supply 2.00 Labor Demanded (Thousands of workers) 12 Labor Supplied (Thousands of workers) 1,400 200 10 Demand 2 200 400 600 800 1000 1200 1400 1600 LABOR (Thousands of workers) Enter $10.00 Into the box labeled WVage on the previous graph. Hint: Be sure to pay attention to the units used on the graph. At the union wage, union workers will be employed. The following…
6. Contrasting labor union laws in two states 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. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Graph Input Tool Market for Labor 16 14 Supply Wage 2.00 (Dollars per hour) 12 1,400 200 Labor Demanded (Thousands of workers) Labor Supplied (Thousands of workers) 10 Demand 200 400 600 800 1000 1200 1400 1600 LABOR (Thousands of workers) Enter $10.00 into the box labeled Wage on the previous graph. Hint: Be sure to pay attention to the units used on the graph. At the union wage, union workers will be employed. WAGE (Dollars per…
3. Contrasting labor union laws in two states Consider two labor markets, an eastern state and a western state, that enact different laws governing labor unions. The following graph illustrates the labor market for the state in the East. Initially, the market-clearing hourly wage is $24. Suppose that the government in this eastern state passes a law that makes it easier for workers to become union members. Through a process of collective bargaining, the union negotiates an hourly wage of $36. Use the black point (plus symbol) to show how many union workers will be employed at the $36 wage. (Hint: Be sure to place the point on the appropriate curve.) Use the black point (plus symbol) to show how many union workers will be employed at the $36 wage. (Hint: Be sure to place the point on the appropriate curve.) Refer to the attachment screenshot. The following graph illustrates the labor market for the state in the West. The government in this state passes a strong…
6. Contrasting labor union laws in two states Consider two hypothetical states that operate under different laws governing labor unions. The following graph shows the labor market in a state in the West. Initially, the market-clearing wage in this state is $8.00 per hour. Now, suppose that the General Assembly in this western state passes a law that makes it easier for workers to join a union. Through collective bargaining, the union negotiates an hourly wage of $10.00. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. WAGE (Dollars per hour) 16 14 12 10 8 2 0 0 Supply Demand 200 400 600 800 1000 1200 1400 1600 LABOR (Thousands of workers) Graph Input Tool Market for Labor Wage (Dollars per hour) Enter $10.00 into the box labeled Wage on the previous graph. Hint: Be sure to pay attention to the units used on the graph. union workers will be employed. At the union wage, Labor Demanded (Thousands of workers)…
1. Discuss the role of the following in the process of organizing a labor union: employee, employer, DOLE. 2. You are the negotiator in the latest Philippine Airlines Employees Association/Philippine Airlines (PALEA/PAL) contract. What would you do if negotiations reached a bargaining deadlock? Be specific and explain the consequences of any proposed action. 3. Are you for or against Union? What can you say about the weakening of labor movement in the Philippines because of the growth of business process outsourcing?
6. Under certain circumstances, it is possible for unions to better their interests by affecting or altering the union constraint in a direct or indirect manner. Could you recommend a strategy that may work for this goal, based on your microeconomics knowledge? How can unions put your strategy to work? Demonstrate the effect of your strategy in a diagram.
2. Working with Numbers and Graphs Q2 The following graph shows the demand for labor in three unions, X, V, and z. 50 45 40 35 30 25 D, 20 Dy 15 10 5 3 5 6 7 10 QUANTITY OF LABOR (Thousands of workers) Complete the following table by entering the quantity of labor demanded at each wage rate for the three unions. (Hint: Remember to enter the quantity of labor in thousands.) Wage Rate Quantity of Labor Demanded (Dollars per hour) Union Y Union X Union Z 25 30 The wage-employment trade-off is most pronounced for union WAGE RATE (Dolars per hour)
Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in the town ofUnionville, where all the bus drivers belong to a union. a. What would the equilibrium wage and quantity be in this market if no union existed?b. Assume that the union has enough negotiating power to raise the wage to $4 per hour higher than it wouldotherwise be. Is there now excess demand or excess supply of labor?