question----1. Graphically show how a labor union can increase both the wage rate and employment in the case of.Description1. Graphically show how a labor union can increase both the wage rate and employment in the case of a monopsony. 2. Graphically show how a labor union can reduce the wage rate fornonunion workers. 3. Explain why the higher wages that go to union employees do notnecessarily come out of profits.Point -1Union wage negotiations. Without a union, the equilibrium at E would involved the wage we and the quantity of labor Qe. However, the union id able to use its bargaining power to raise the wage to Wu. The result is an excess supply of labor for union jobs , that is , a quantity of labor supplied, Qs is greater than firms quantity demanded for labor, Qd.Point -2The power of unions to set nonunion workers’ pay has fallen since 1979Union density effect on nonunion wages, 1979-2013
Note- line show the predicted change in earnings for a 1 percentage point increase in unionization. The sample is restricted to nonunion, full tie workers in the private sector age
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Nonunion, labor union, 1. Graphically Show How A Lab, Labor Union Can Increase Both