Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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Question
Chapter ST9, Problem 7CQ
To determine
Reason for demanding higher minimum wage rate by the union.
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Students have asked these similar questions
Touch 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.
How did the rise of labor unions change the working conditions of labor?
In the following table, identify which side of the labor market is affected by labor unions' practices.
Practice by Labor Union
Union supports legislation that reduces imports of the product produced by union
labor.
Union organizes training programs for new entrants.
Union requires new hires to become a member within a certain time after being
employed.
The Demand for Union
Labor
The Supply for Union
Labor
Chapter ST9 Solutions
Economics: Private and Public Choice
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Similar questions
- Explain why we have seen a decrease in labor unions.arrow_forwardWhat happens when a firm does not agree to the wages the employees of a union demand? Select the correct answer below: Nothing. The union workers do not have the ability to negotiate the salary. Union workers can go on strike demanding higher wages. Nothing. The union wages are based on a contract so they can't negotiate higher wages. The firm does not have the option to disagree, it must meet the wage demands of the union.arrow_forwardIn the following table, identify which side of the labor market is affected by labor unions' practices. Practice by Labor Union Union supports legislation that increases the price of imports of the product produced by union labor. Union lobbies for an increase in the minimum wage. Union imposes rigid certification requirements for all employees. The Demand for Union Labor The Supply for Union Laborarrow_forward
- Consider two provinces that adopt different laws concerning labour unions. The following graph shows the labour market in a province in the West. Initially, the market-clearing wage is $10 per hour. Suppose that the legislature in this western province passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $16 per hour. Use the black point (plus symbol) to show how many union workers will be employed at the $16 wage. (Hint: Be sure to place the point on the appropriate curve.) Labour Market in the West 20 18 Union Negotiations 16 14 Supply 12 10 2 Demand ㅇ 4 6 8 10 12 14 18 18 20 LABOUR (Millions of workers) The following graph shows the labour market in a province in Eastern Canada. The legislature in this province 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-clearing value. Except for this difference in legislation, the two…arrow_forwardTable 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in the town ofUnionville, where all the bus drivers belong to a union. a. What would the equilibrium wage and quantity be in this market if no union existed?b. Assume that the union has enough negotiating power to raise the wage to $4 per hour higher than it wouldotherwise be. Is there now excess demand or excess supply of labor?arrow_forwardWhat percentage of wage and salary workers are union members? Is this percentage higher, or is it lower, than in previous decades? Which of the factors explaining the trend do you think is most dominant?arrow_forward
- The market for Pepsi is in equilibrium. The workers at Pepsi get a new union contract that doubles their pay. Draw a Supply and Demand graph, properly labeled, and show the initial situation and the situation after the new information is released on the same graph with arrows showing the direction of any change. Clearly state the impact on price and quantity.arrow_forwardConsider two provinces that adopt different laws concerning labour unions. The following graph shows the labour market in a province in the West. Initially, the market-clearing wage is $5 per hour. Suppose that the legislature in this western province passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $7 per hour. Use the black point (plus symbol) to show how many union workers will be employed at the $7 wage. (Hint: Be sure to place the point on the appropriate curve.)arrow_forwardThe table below shows the quantity demanded and supplied in the labor market for nurses in the town of Neverland, where all nurses belong to a union. Quantity Quantity Wages per Hour Demanded of Workers Supplied of Workers $20 12,000 6,000 $25 10,000 7,000 $30 8,000 8,000 $35 6,000 9,000 $40 4,000 10,000 $45 2,000 11,000 Based on the table above, answer the following: a) What would the equilibrium wage and equilibrium quantity of workers be in this market if no union existed? JUSTIFY your answer! b) Assume that the union has enough negotiating power to raise the wage to $10 per hour higher than it would otherwise be. Is there now excess demand or excess supply of workers? JUSTIFY your answer!arrow_forward
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