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

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Labor Markets

Section: Chapter Questions

Problem 2SQP

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Consider two hypothetical states that operate under different laws goveringsborunione The following graph shows the labor market in a state in the West. Initially, the market-clearing wage in this state is $0.00 per hour. Now, suppon 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. LABOR (T Supply Demand Enter $10.00 Into the box labeled Wage on the previous graph. Hint: nur to pay attention to the units used on the graph At the unia wage, www Graph Input Tool Market for Labor Wage Labor Demanded (Thousands of union workers will be employed. Adjust the graph to show what happens to employment and wages in the eastern state 27 The following graph showe the labor market in a state in the East. Suppose the legislature in…
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