Consider two states that adopt different laws concerning labor unions. The follo
ID: 1164244 • Letter: C
Question
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 8 Wage 2.00 (Dollars per hour) Labor Demanded Labor Supplied (Thousands of 200 12 1.400 (Thousands of 0 200 400 600 800 1000 1200 1400 1600 LABOR (Thousands of workers)Explanation / Answer
If the union wage is $10 per hour as given in picture one then the amount of labor employed is 600 ( thousands of workers)
If the worker in the north decides to move in the south means the supply curve in the labor market diagram would shift to the right.
Because of the union action in the north, the workers which are worse off are the original workers in the south which could not have the advantage of bargaining power as there was no union in the south and as more workers migrated from the north this implies competition to increase in the south and derive equilibrium wages to lower.
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