or Assume the labor market for fuel-efficient vehicle technologies in the United States is illustrated in the figure to the right. If the United Auto Workers (UAW) union organizes these workers and negotiates a wage of $25.00 an hour, what will be the resulting deadweight loss, if any, from the union-negotiated wage compared to the competitive equilibrium? 1.) Using the triangle drawing tool, shade in surplus for the employers (the consumers of labor) from the union-negotiated wages (CS) in the figure to the right. 2.) Using the triangle (PSTriangle) and rectangle (PS Rectangle) drawing tools each once, shade in surplus for the workers (the suppliers of labor). 3.) Using the triangle drawing tool, shade in deadweight loss (DWL) from the union-mandated wage. Carefully follow the instructions above, and only draw the required objects. G Wage (dollars per hour) 35.00- 32.50- 30.00- 27.50- 25.00- 22.50- 20.00- 17.50- 15.00- 12.50- 10.00- 7.50- 5.00- 2.50- 0.00+ O 50 Union 100 150 200 Quantity (workers in 1000s) Supply Demand 250 300 Next

Economics Suppose that Congress passes a law requiring employers to provide employees some benefit (such as healthcare) that raises the cost of an employee by $3 per hour. Assume that firms were not providing such benefits prior to the legislation. On the following graph, use the green line (triangle symbel) to show the effect this employer mandate has on the demand for labor. Demand Supply 20 18 New Demand 10 14 12 New Supply 10 Equilibrium Before Law Equilibrium After Law 0 1 2 5 10 Quantity of Labor (Thousands) Suppose employees place a value on this benefit exactly equal to its cost. On the preceding graph, use the purple line (diamond symbol) to show the effect this employer mandate has on the supply of labor. Suppose the wage is free to balance supply and demand. Use the black point (plus symbol) to indicate the eauilibrium wage and level of employment before this law, and use the grey point (star symbol) to indicate the equilibrium wage and level of employment after this law is…

(c) Let us now turn to the labor market for grocery store workers in Little town. Recently one of the last two grocery stores in Little town closed leaving only one employer for grocery store workers in this area. This labor market is not very competitive. What type of market structure is this?  (d) Draw a typical supply curve (i.e. average expenditure), marginal expenditure, and demand for the grocery store in Little Town. Label the equilibrium wage and number of grocery store workers.  (e) Suppose that some time has passed and the population has grown in Little Town and there are now many grocery stores. Now suppose that the grocery store workers unionize. Draw a graph to depict the equilibrium wage and number of workers in this new market.

Consider the Labor Market in New York and New Jersey. In both markets Demand is given by w = 1000-2E. Assume New York has a perfectly inelastic supply of 400 workers and New Jersey has perfectly inelastic supply of 200 workers. a. Graph the two markets and find the equilibrium wage in each market. b. With costless mobility across markets what would the long-run wage in each market. Show this in your graphs. c. Instead, assume that there are still 400 workers in New York and 200 in New Jersey but now the cost of moving is $ 100. What will be the long-run wage in each market? Explain