### Labor Market Analysis: Unionville City Bus DriversThe table below illustrates the quantity of bus drivers demanded and supplied in Unionville's labor market, where all 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 |**Key Insights:**1. **Equilibrium Analysis:** - The equilibrium wage and quantity occur when the quantity of workers demanded equals the quantity supplied. Here, this occurs at a wage of $18 per hour, with 8,000 workers demanded and supplied.2. **Union Influence on Wages:** - If the union negotiates the wage to $4 higher than the equilibrium ($22 per hour), the table shows: - Demand: 4,000 workers - Supply: 10,000 workers - This results in an **excess supply** of labor, with 6,000 more workers supplied than demanded.This analysis highlights the impact of wage adjustments due to union negotiations on labor supply and demand in Unionville's bus driving sector. Understanding these dynamics is crucial for navigating the labor market and anticipating potential challenges.

3) a) Equilibrium will be where quantity of labour demanded is equal to quantity of labor supplied.…

3. The table below 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. Quantity Of Workers Demanded Quantity of Workers Supplied Wage Per Hour $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 a. What would the equilibrium wage and quantity be in this market if no union existed? b. 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? 374 words m Stater) 263%

3. The table below 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. Quantity Of Workers Demanded Quantity of Workers Supplied Wage Per Hour $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 a. What would the equilibrium wage and quantity be in this market if no union existed? b. 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? 374 words m Stater) 263%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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