Time Period at higher wages, more workers will seek to enter the industry, thereby adding to the surplus of workers where Qs is greater then QD- the union establishes by collective bargaining a wage rate that exceeds equilibrium, an excess quantity of labor will be demanded. there is a trade-off union leadership faces: Higher wages inevitably mean a reduction in total employment-a smaller number of positions. if the union establishes by collective bargaining a wage rate that exceeds equilibrium at point Wy an excess quantity of labor will be supplied.

Time Period at higher wages, more workers will seek to enter the industry, thereby adding to the surplus of workers where Qs is greater then QD- the union establishes by collective bargaining a wage rate that exceeds equilibrium, an excess quantity of labor will be demanded. there is a trade-off union leadership faces: Higher wages inevitably mean a reduction in total employment-a smaller number of positions. if the union establishes by collective bargaining a wage rate that exceeds equilibrium at point Wy an excess quantity of labor will be supplied.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 15P

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