Consider two provinces that adopt different laws concerning labour unions. The following graph shows the labour market in a province in the West. Initially, the market-clearing wage is $5 per hour. Suppose that the legislature in this western province passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $7 per hour. Use the black point (plus symbol) to show how many union workers will be employed at the $7 wage. (Hint: Be sure to place the point on the appropriate curve.)

Consider two provinces that adopt different laws concerning labour unions. The following graph shows the labour market in a province in the West. Initially, the market-clearing wage is $5 per hour. Suppose that the legislature in this western province passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $7 per hour. Use the black point (plus symbol) to show how many union workers will be employed at the $7 wage. (Hint: Be sure to place the point on the appropriate curve.)

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 9SCQ: Explain i11each of the following situations how market forces might give a business an incentive to...

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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…