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: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter ST9, Problem 4CQ
(a)
To determine
Check whether the statement is correct regarding the effect of increasing price of a good.
(b)
To determine
Check whether the statement is correct regarding the effect of increasing price of craft union.
(c)
To determine
Check whether the statement is correct regarding the interest of labor union and union employers.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Consider two states that adopt different laws concerning labor unions.
The following graph shows the labor market in a state in the North. Initially, the market-clearing wage there is $8.00 per hour.
Suppose that the legislature in this northern state passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $10.00 per hour.
At the union wage, how many union workers will be employed?
This table 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?
Wage per Hour
Quantity of Workers Demanded
Quantity of Workers Supplied
$14
12,000
6,000
$16
10,000
7,000
$18
8,000
8,000
$20
6,000
9,000
$22
4,000
10,000
$24
2,000
11,000
The table below shows the quantity demanded and supplied in the labor market for economics professors at I'mAStateUniversity, where all the professors belong to a union. All of the economics professors could also work as economic consultants, but the market for economic consultants is not unionized.
Annual Salary
Quantity of workers demanded
Quantity of workers supplied
$50,000
95
20
$60,000
80
30
$70,000
65
40
$80,000
50
50
$90,000
35
60
$100,000
20
70
If the union negotiates an annual salary increase for economics professors that is $20,000 higher than the market wage rate for economic consultants, then the market wage rate for the consulting positions will _____________________ and the quantity of economic consultants employed will_____________________.
Question 3 options:
rise, rise
rise, fall
fall, rise
fall, fall
Chapter ST9 Solutions
Microeconomics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- For each of the following determine the impact on the demand or the supply of labor and the effect on the equilibrium wage and quantity of labor employed. a. An increase in the price of capital. b. A union is formed which uses collective bargaining to obtain higher wages for its members. c. The marginal productivity of workers rises. d. People desire leisure more than ever before (e.g. it is Christmas Day). e. The wages offered in other labor markets requiring similar skills are now offering substantially higher wages. f. The fringe (non-monetary) benefits offered in this market have increased substantially. g. The government has just adopted an "open-door' immigration policy?arrow_forwardTouch upon the idea of how labor unions advocate and defend minimum wage legislation. Research and state whether you believe this to be true or false, defend your position.arrow_forwardUnion A wants to represent workers in a firm that would hire 20,000 workers if the wage rate is $12 and would hire 10,000 workers if the wage rate is $15. Union B wants to represent workers in a firm that would hire 30,000 workers if the wage rate is $20 and would hire 33,000 workers if the wage rate is $15. Which union is likely to or ganize?arrow_forward
- Q.1.19 Which of the following will NOT shift the market supply of labour curve? (a) A change in the wages of the labourers.(b) A change in migration.(c) A change in the size of the population due to a change in birth or death rates.(d) Trade union action. Q.1.20 An upward-sloping labour supply curve illustrates that ceteris paribus; (a) the quantity of labour supplied and the hours of work per week are directly related.(b) the quantity of labour supplied and the price of labour used to produce output are inversely related.(c) individuals use higher income to buy back leisure time.(d) a greater quantity of labour would be supplied at higher wage rates.arrow_forwardWhat economic factors influence the success or failure of labor strikes, and how do these factors impact both workers and employers?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc