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Contrasting labor union laws in two states Consider two states that adopt different laws concerning labor unions
Contrasting labor union laws in two states 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. 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 14 Supply 2.00 Wage (Dollars per hour) Labor Demanded (Thousands of workers) 12 1,400 200 Labor Supplied (Thousands of workers) 10 WAGE (Dollars per hour) 8 Demand 2 0 0 200 400 600 800 1000 1200 1400 1600 LABOR (Thousands of workers) Enter $10.00 into the box labeled Wage 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.
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