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. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. WAGE RATE (Dollars per hour) 30 25 20 15 10 5 0 Supply 0 Demand 12 24 36 48 60 72 QUANTITY OF LABOR (Thousands of workers) Graph Input Tool Wage Rate (Dollars per hour) Quantity Demanded (Thousands of workers) Excess Supply (Thousands of workers) Demand Shifter Pro-union Advertising (Millions of dollars) The union's wage increase from $15 to $20 per hour causes an excess supply of thousands of workers.) 15 36 0 0 Quantity Supplied (Thousands of workers) Shortage (Thousands of workers) ? 36 0 workers. (Note: Be sure to enter your answer in Suppose that the union, in order to mitigate the unemployment caused by the wage increase, bolsters demand by rolling out a "Buy Union" advertising campaign. If the union spends $5 million on the campaign, the excess supply of labor will be workers. (Note: Be sure to enter your answer in thousands of workers.)

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. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. WAGE RATE (Dollars per hour) 30 25 20 15 10 5 0 Supply 0 Demand 12 24 36 48 60 72 QUANTITY OF LABOR (Thousands of workers) Graph Input Tool Wage Rate (Dollars per hour) Quantity Demanded (Thousands of workers) Excess Supply (Thousands of workers) Demand Shifter Pro-union Advertising (Millions of dollars) The union's wage increase from $15 to $20 per hour causes an excess supply of thousands of workers.) 15 36 0 0 Quantity Supplied (Thousands of workers) Shortage (Thousands of workers) ? 36 0 workers. (Note: Be sure to enter your answer in Suppose that the union, in order to mitigate the unemployment caused by the wage increase, bolsters demand by rolling out a "Buy Union" advertising campaign. If the union spends $5 million on the campaign, the excess supply of labor will be workers. (Note: Be sure to enter your answer in thousands of workers.)

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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Similar questions

Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in the town of Unionville, where all the bus drivers belong to a union. What would the equilibrium wage and quantity be in this market if no union existed? Assume that the union has enough negotiating power to raise the wage to 4 per hour higher than it would otherwise be. Is there now excess demand or excess supply of labor?
Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a monopolys marginal revenue. What is the monopolys marginal revenue product at each level of employment? If the monopoly operates in a perfectly competitive labor market where the going market wage is 20, what is the films profit maximizing level of employment?
What is die price commonly called in the labor market?
Name some factors that can cause- a shift in the supply curve in labor markets.
What determines the demand for labor for a firm with market power in the output market?
Why are the factors that shift the demand for a product different from the factors that shift the demand for labor? Why are the factors that shift the supply of a product different from those that shift the supply of labor?
Name some factors that can cause a shift in the demand curve in labor markets.
Explain i11each of the following situations how market forces might give a business an incentive to act in a less discriminatory fashion. A local flower delivery business run by a bigoted white owner notices that many of its local customers are black. An assembly line has traditionally only hired men, but it is having a hard time hiring sufficiently qualified workers. A biased owner of a firm that provides home health care services would like to pay lower wages to Hispanic workers than to other employees.