WAGELabor Market in the WestLABORSupplyDemandODemandSupply? 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 makesit much more challenging for unions to organize workers, so the wage is always equal to the market-clearing value. With the lone exception of thislegal 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 foreastern 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 andchoose to move to the western state.

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WAGE Labor Market in the West LABOR Supply Demand Demand Supply ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

WAGE
Labor Market in the West
LABOR
Supply
Demand
O
Demand
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.

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