Question

6. Contrasting labor union laws in two states Consider two hypothetical states that operate under different laws governing labor unions. The following graph shows the labor market in a state in the West. Initially, the market-clearing wage in this state is $8.00 per hour. Now, suppose that the General Assembly in this western state passes a law that makes it easier for workers to join a union. Through collective bargaining, the union negotiates an hourly wage of $10.00. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Enter \$10,00 into the Dox labeled Wage on the previous graph. Hint: Be sure to pay attention to the units used on the graph. At the union wage, union workers will be employed. The following graph shows the labor market in a state in the East. Suppose the logislature in this state passes strong "right-to-work" laws that make it very difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Assume that with the exception of this difference in legislation, the western and eastem states are extremely simitar. Thie initial postion of the graph corresponds to the initiat labor market condition in the eastern state before the labor union negotiated the new, higher wage for workers in the western state. Suppose that after the wage goes up in the westem state, some workers in the western state lose their jobs and decide to move to the eastern state. Adjust the graph to show inhat happens to employment and wages in the eastern state. Which of the fellowing groups are worse off as a result of the union action in the western state? Check all that apply Employers in the western state Warkers in the western state employed at the union wage All workers in the western state The original workers in the eastern state

Answer 1

Employers and union workers in the western state are worse off. Workers in the eastern state are not affected or may benefit.

Step-by-step explanation:

The question asks about the impact of a union action in a western state on different groups. When the union negotiates a higher wage in the western state, some workers may lose their jobs and decide to move to the eastern state. This will increase the labor supply in the eastern state, causing wages to decrease and employment to increase. As a result, employers in the western state and workers in the western state employed at the union wage are worse off, while all workers in the western state and the original workers in the eastern state are not affected or may even benefit from the increased labor supply.