Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 23, Problem 8SQP
To determine
The real deficit.
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Suppose that a Labour Market determines the Quantity of Labour (L) as functions of the wage
rate (w), according to the following Supply and Demand functions:
Supply: L = w
Demand: L=210 - 2w
9. [2 points] What is the free-market wage rate (w*) and Labour quantity (L*)?
Now suppose that the Labour Force forms a union, and collectively bargains to a price floor of
W = $80.
10. [3 points] What would be the Labour Decline and the Unemployment caused by this union
policy?
11. [2 points] Who wins and who loses from this union policy?
Suppose now that this union finds a way to push out the Demand for Labour to reduce this
Labour Decline.
12. [3 points] How much does the union need to increase the Demand function by in order
to reduce this Labour Decline to zero?
Chapter 23 Solutions
Economics For Today
Ch. 23.1 - Prob. 1YTECh. 23.1 - Prob. 2YTECh. 23.3 - Prob. 1YTECh. 23.3 - Prob. 2YTECh. 23 - Prob. 1SQPCh. 23 - Prob. 2SQPCh. 23 - Prob. 3SQPCh. 23 - Prob. 4SQPCh. 23 - Prob. 5SQPCh. 23 - Prob. 6SQP
Ch. 23 - Prob. 7SQPCh. 23 - Prob. 8SQPCh. 23 - Prob. 9SQPCh. 23 - Prob. 10SQPCh. 23 - Prob. 11SQPCh. 23 - Prob. 1SQCh. 23 - Prob. 2SQCh. 23 - Prob. 3SQCh. 23 - Prob. 4SQCh. 23 - Prob. 5SQCh. 23 - Prob. 6SQCh. 23 - Prob. 7SQCh. 23 - Prob. 8SQCh. 23 - Prob. 9SQCh. 23 - Prob. 10SQCh. 23 - Prob. 11SQCh. 23 - Prob. 12SQCh. 23 - Prob. 13SQCh. 23 - Prob. 14SQCh. 23 - Prob. 15SQCh. 23 - Prob. 16SQCh. 23 - Prob. 17SQCh. 23 - Prob. 18SQCh. 23 - Prob. 19SQCh. 23 - Prob. 20SQ
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