1 ) In the table Quatity of labor hired ( thousands of workes) the options are (

ID: 1098918 • Letter: 1

Question

1) In the table Quatity of labor hired ( thousands of workes) the options are (5, 2.5 & 7.5).

$6 are (5, 2.5 & 7.5).

$10 are (5, 2.5 & 7.5).

$14 are (5, 2.5 & 7.5).

2) In the Total Hourly Wage Income the options are on

$6 are $30,00, $45,000, & 48,000

$10 are $ 50,000, $40,000, & 64,000

$14 are $30,00, $45,000, & 48,000

3) In the Elastycity of Demand

First and secound blank block the options are Inelastic or elastic.

4) In the paraghaft the first and secound blank the option are increases or decrease.

Consider the demand for labor in an industry in which workers are represented by a strong, inclusive union. Assume the union has all of the bargaining power during wage negotiations: specifically, assume the union determines the wage in the market, and then firms choose how many workers to hire given the labor demand curve. The following graph shows the labor demand curve in this market-that is, the number of workers firms are willing to hire before the union has undertaken any wage negotiations. Assume that for all the wages below, the number of workers willing to work is at least as great as the number of workers firms are willing to hire. Fill in the following table with the number of workers hired and the total wage income received by union workers. If the demand for labor at the middle wage of $10 is close to unit elastic, is the demand for labor elastic or inelastic at wages of $6 and $14? Fill in the last column of the table with your results. Suppose the union's goal is to maximize the total wage income received by union workers-namely, the average union wage times the number of union workers employed. In this case, if labor demand is elastic, the union should _ the union wage rate, and if labor demand is inelastic, the union should_ the union wage rate.

Explanation / Answer

Hourly wage rate

Quantity of labor

Total hourly wage

Elasticity

7.5

6 * 7500 = $45000

Inelastic

$10

10 * 5000 = $50000

Unit

$14

2.5

14 * 2500 = $35000

Elastic

Inelastic: increase the wage rate

Elastic: decrease the wage rate