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. 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 Table14.12 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 14.12 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. 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 Table14.12 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?
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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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.
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 |
Table14.12
- 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?
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