SQ5_LaborMarketsAK

In addition given that there are 600 workers we know

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Unformatted text preview: e quantity of labor demanded in industry A, LB is the quantity where L of labor demanded in industry B, WA is the wage in industry A, and WB is the wage in industry B. a. On separate graphs, sketch the labor demand curve in each industry. b. What is the equilibrium wage and employment level in each industry? c. Suppose workers in industry A unionize and are able to negotiate a wage of $14 per hour. What will happen to employment in industry A? What will happen to employment in industry B? Be as precise as possible. d. After industry A unionizes, what will be the wage differential between industry A and B? Show your work...
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