Suppose there is a competitive market for retail workers at a large shopping mall that is large enough to constitute its own labour market. The labour demand curve is QD = 1000 - 20(w). The labour supply curve is QS = 400 + 40(w). Suppose that a union now successfully organizes the workers at this mall and obtains a wage rate of $11 (but does not affect the demand curve). One result is
A) a decrease in employment of 60 workers.
B) a decrease in employment of 20 workers.
C) an increase in employment of 20 workers.
D) an increase in employment of 40 workers.
E) a decrease in employment of 40 workers.
Ans: C) an increase in employment of 20 workers.
Economics
You might also like to view...
A complete information game is a special case of an incomplete information game -- where "Nature" assigns each player a "type" with probability 1.
Answer the following statement true (T) or false (F)
Economics
The creation of the dust bowl and the migration of the "Okies" to California took place in the
A. 1920s. B. 1930s. C. 1940s. D. 1950s.
Economics