Sector 1 Sector 2 (union) (nonunion) A C W. D2 D G L2 L, Employment Employment Assumptions: These two graphs show two sectors of the labor market for a particular kind of labor. Relevant product markets are competitive. The two labor demand curves are identical and initially the quantities of labor employed in the two sectors are L1 and L'1 and the wage rate in each sector is Wp. Refer to the diagrams and assumptions. The change in employment in sector 1 to which a W, to W, union wage increase gives rise will cause output in that sector to: O increase by A + B. O decrease by B+C + D. O decrease by A + B. O decrease by C+ D. Wage rate D, Wage rate
Sector 1 Sector 2 (union) (nonunion) A C W. D2 D G L2 L, Employment Employment Assumptions: These two graphs show two sectors of the labor market for a particular kind of labor. Relevant product markets are competitive. The two labor demand curves are identical and initially the quantities of labor employed in the two sectors are L1 and L'1 and the wage rate in each sector is Wp. Refer to the diagrams and assumptions. The change in employment in sector 1 to which a W, to W, union wage increase gives rise will cause output in that sector to: O increase by A + B. O decrease by B+C + D. O decrease by A + B. O decrease by C+ D. Wage rate D, Wage rate
Chapter10: Labor Markets And Income Distribution
Section: Chapter Questions
Problem 3SQP
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