5% MINDTAP Homework (Ch 15) S. Contrasting labor union laws in two states 5 Cons

Question

5% MINDTAP Homework (Ch 15) S. Contrasting labor union laws in two states 5 Consider two states that adopt different laws concerning labor unions state passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $10.00 per hour t toof to help you answer the following questions. You will not be graded on any changes you make to this graph ( Graph Input Tool Market for Labor per how 1400Labor Supplied 200 12 0 200 400 600 800 1050 1200 1400 600

Explanation / Answer

In the first case, the labour union is successful in raising the wage rate to $10. This reduces the employment in the north and hence the union employment is now 600 thausand.

With higher Union wage rate there is unemployment in the north and the unemployed workers now migrate to south. They increase the supply of labour in the south so that the supply curve of labour shifts to the right. This will increase the number of workers employed but it will reduce the wage rate.

Hence the workers that are a part of Union in the north and who received the higher wage rate are the ones that benefit from unionization. First option is correct.

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