6. Contrasting labor union laws in two statesConsider 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 unionnegotiates 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 ToolMarket for Labor16Wage(Dollars per hour)14Supply2.00Labor Demanded(Thousands ofworkers)12Labor Supplied(Thousands ofworkers)1,40020010Demand2200 400 600 800 1000 1200 1400 1600LABOR (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 verydifficult for unions to organize workers, so the wage is always equal to the market-dearing value. Except for this difference in legislation, the twostates 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 southernstate.Adjust the graph to show what happens to employment and wages in the southern state.(?)SupplyDemandSupplyDemandLABORWhich 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 stateO The original workers in the southern stateEmployers in the northem stateO workers who find new jobs in the southem stateWAGE (Dolars per hour)

At the union wage, there will be unemployment and unemployed workers will move to the Southern…

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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