The diagram provides supply and demand curves for a competitive labour market If a labour union negobates the wage to W, in an otherwise competitive labour market OA employers will hire L, labour OB. employers will hre labour at the level higher than La OC. the supply of labour will stay the same OD equilibrium will occur at W, and Ly OE the demand for labour will stay the same W₂ W₁ Quantity of Labour Supply Demand

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
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The diagram provides supply and demand curves for a competitive labour market
it a labour union negobates the wage to W, in an otherwise competitive labour market
OA employers will hire L, labour
OB. employers will here labour at the level higher than L
OC. the supply of labour will stay the same
OD equilibrium will occur at W, and L
OE the demand for labour will stay the same
0
Wage Rate
W₁
Quarnty of Labour
Supply
Demand
Transcribed Image Text:The diagram provides supply and demand curves for a competitive labour market it a labour union negobates the wage to W, in an otherwise competitive labour market OA employers will hire L, labour OB. employers will here labour at the level higher than L OC. the supply of labour will stay the same OD equilibrium will occur at W, and L OE the demand for labour will stay the same 0 Wage Rate W₁ Quarnty of Labour Supply Demand
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