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Unformatted text preview: above before the wage increase. Calculate the income and substitution effects of the original wage increase. c) Draw on a diagram Justines labour supply curve and calculate her labour supply elasticity. 2) When a union is formed and raises the wage rate in an industry, workers will be attracted to that industry, so wages in non-unionised industries must rise Examine this statement when: a) There is no monopsony in the labour market. b) There is monopsony in the labour market....
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This note was uploaded on 03/15/2012 for the course EC 111 taught by Professor Timhatton during the Spring '12 term at Uni. Essex.
- Spring '12