W 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 4 Click to see additional instructions [Note: Be sure to review typo corrected on Question 3 part B.] 5 6 7 8 S D 9 L 10 Refer to the attached figure. A. In equilibrium total worker surplus in this labour market is $ which is s per worker/labour unit employed. B. Suppose the workers bargain collectively for a higher wage. The following wages would lead to an increase in total worker surplus (Enter "1" if yes and "0" if no): $1 :$2 ; $3 $4 $5 :56 The following wages would lead to an increase in worker surplus per worker employed (Enter "1" if yes and "0" if no): $1 $2 $3 ;$4 The following wages would lead to an increase in involuntary unemployment (Enter "1" if yes and "0" if no): $1 :52 :$3 ; $4 ;$5 :56 ;$7 C. (Notes upload) If you were an employed worker in the original equilibrium, what wage would you personally prefer the union to negotiate? Why? Explain the tradeoff workers face here. D. (Notes upload) Think about worker characteristics and demographics. What type of worker would be best off when the union negotiates for much higher wages? What sort of worker would be best off when the union negotiates for only small increases in wages? $5 :$6 $7 $7 ;$8 $8 $8
W 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 4 Click to see additional instructions [Note: Be sure to review typo corrected on Question 3 part B.] 5 6 7 8 S D 9 L 10 Refer to the attached figure. A. In equilibrium total worker surplus in this labour market is $ which is s per worker/labour unit employed. B. Suppose the workers bargain collectively for a higher wage. The following wages would lead to an increase in total worker surplus (Enter "1" if yes and "0" if no): $1 :$2 ; $3 $4 $5 :56 The following wages would lead to an increase in worker surplus per worker employed (Enter "1" if yes and "0" if no): $1 $2 $3 ;$4 The following wages would lead to an increase in involuntary unemployment (Enter "1" if yes and "0" if no): $1 :52 :$3 ; $4 ;$5 :56 ;$7 C. (Notes upload) If you were an employed worker in the original equilibrium, what wage would you personally prefer the union to negotiate? Why? Explain the tradeoff workers face here. D. (Notes upload) Think about worker characteristics and demographics. What type of worker would be best off when the union negotiates for much higher wages? What sort of worker would be best off when the union negotiates for only small increases in wages? $5 :$6 $7 $7 ;$8 $8 $8
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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