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e in this western province passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a $16 per hour. lack point (plus symbol) to show how many union workers will be employed at the $16 wage. (Hint: Be sure to place the point on the mte curve.) Labour Market in the West Union Negotiations Supply Demand O 2 4 * 8 10 12 14 16 18 20 LABOUR (Millions of workers) ving graph shows the labour market in a province in Eastern Canada. The legislature in this province passes strong right-to-work laws that ery difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Except for this difference in legislation, rovinces are very similar. I position of the graph corresponds to the initial labour market condition in the eastern province before the labour union negotiated the new, age for workers in the western province.

e in this western province passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a $16 per hour. lack point (plus symbol) to show how many union workers will be employed at the $16 wage. (Hint: Be sure to place the point on the mte curve.) Labour Market in the West Union Negotiations Supply Demand O 2 4 * 8 10 12 14 16 18 20 LABOUR (Millions of workers) ving graph shows the labour market in a province in Eastern Canada. The legislature in this province passes strong right-to-work laws that ery difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Except for this difference in legislation, rovinces are very similar. I position of the graph corresponds to the initial labour market condition in the eastern province before the labour union negotiated the new, age for workers in the western province.

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST9: Do Labor Unions Increases The Wages Of Workers?
Section: Chapter Questions
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0 2 4 6 8 10 12 14 18 18 20 LABOUR (Millions of workers) The following graph shows the labour market in a province in Eastern Canada. The legislature in this province passes strong right-to-work laws that make it very difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Except for this difference in legislation, the two provinces are very similar. The initial position of the graph corresponds to the initial labour market condition in the eastern province before the labour union negotiated the new, higher wage for workers in the western province. Adjust the graph to show what happens to employment and wages in the eastern province after some workers in the western province lose their jobs and decide to move to the eastern province. (? Labour Market in Eastern Canada Supply Demand Supply Demand LABOUR WAGE
Transcribed Image Text:0 2 4 6 8 10 12 14 18 18 20 LABOUR (Millions of workers) The following graph shows the labour market in a province in Eastern Canada. The legislature in this province passes strong right-to-work laws that make it very difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Except for this difference in legislation, the two provinces are very similar. The initial position of the graph corresponds to the initial labour market condition in the eastern province before the labour union negotiated the new, higher wage for workers in the western province. Adjust the graph to show what happens to employment and wages in the eastern province after some workers in the western province lose their jobs and decide to move to the eastern province. (? Labour Market in Eastern Canada Supply Demand Supply Demand LABOUR WAGE
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 $10 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 $16 per hour. Use the black point (plus symbol) to show how many union workers will be employed at the $16 wage. (Hint: Be sure to place the point on the appropriate curve.) Labour Market in the West 20 18 Union Negotiations 16 14 Supply 12 10 2 Demand ㅇ 4 6 8 10 12 14 18 18 20 LABOUR (Millions of workers) The following graph shows the labour market in a province in Eastern Canada. The legislature in this province passes strong right-to-work laws that make it very difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Except for this difference in legislation, the two provinces are very similar. The initial position of the graph corresponds to the initial labour market condition in the eastern province before the labour union negotiated the new, higher wage for workers in the western province. WAGE (Dollars per hour) 2.
Transcribed Image Text: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 $10 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 $16 per hour. Use the black point (plus symbol) to show how many union workers will be employed at the $16 wage. (Hint: Be sure to place the point on the appropriate curve.) Labour Market in the West 20 18 Union Negotiations 16 14 Supply 12 10 2 Demand ㅇ 4 6 8 10 12 14 18 18 20 LABOUR (Millions of workers) The following graph shows the labour market in a province in Eastern Canada. The legislature in this province passes strong right-to-work laws that make it very difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Except for this difference in legislation, the two provinces are very similar. The initial position of the graph corresponds to the initial labour market condition in the eastern province before the labour union negotiated the new, higher wage for workers in the western province. WAGE (Dollars per hour) 2.
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