Consider two states that adopt different laws conceming labor unions. The following graph shows the labor market in a state in the North. Initially, the market-dlearing 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 bargaining, the union negotlates 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.
Consider two states that adopt different laws conceming labor unions. The following graph shows the labor market in a state in the North. Initially, the market-dlearing 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 bargaining, the union negotlates 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.
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 3SCQ: Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in...
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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 graph shows the labor market In a state in the South. The legislature In this state 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-dearing value. Except for this difference in legislation, the two
states are very similar.
The Initlal position of the graph corresponds to the Initial labor market condition in the southern state before the labor unlon negotlated the new,
higher wage for workers in the northern state.
Suppose that after the wage goes up In the northem state, some workers In the northern state lose their jobs and decide to move to the southern
state.
Adjust the graph to show what happens to employment and wages in the southern state.
(?)
Supply
Demand
Supply
Demand
LABOR
Which of the following groups are worse off as a result of the unlon action In the northern state? Check all that apply.
O All workers In the northern state
O The original workers in the southern state
Employers in the northem state
O workers who find new jobs in the southem state
WAGE (Dolars per hour)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F095e7339-ae56-4f10-abfe-6ee1503767c2%2F5eaf9516-684d-4a80-aabb-6b32ed86b0d3%2Ftf6qlf6j_processed.png&w=3840&q=75)
Transcribed Image Text: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 graph shows the labor market In a state in the South. The legislature In this state 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-dearing value. Except for this difference in legislation, the two
states are very similar.
The Initlal position of the graph corresponds to the Initial labor market condition in the southern state before the labor unlon negotlated the new,
higher wage for workers in the northern state.
Suppose that after the wage goes up In the northem state, some workers In the northern state lose their jobs and decide to move to the southern
state.
Adjust the graph to show what happens to employment and wages in the southern state.
(?)
Supply
Demand
Supply
Demand
LABOR
Which of the following groups are worse off as a result of the unlon action In the northern state? Check all that apply.
O All workers In the northern state
O The original workers in the southern state
Employers in the northem state
O workers who find new jobs in the southem state
WAGE (Dolars per hour)
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