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Unformatted text preview: Show your work. e. Is the market outcome after unionization efficient? Explain. Be as precise as possible. 4. Suppose the supply and demand curves for unskilled labor in Nashville are shown in the figure below (next page). a. Calculate worker and firm surplus. b. By how much will the imposition of a minimum wage at $12 per hour reduce total economic surplus? By how much will it increase worker surplus? By how much will it decreas...
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This note was uploaded on 02/13/2014 for the course ECON 2 taught by Professor Kim during the Winter '08 term at UCSD.
 Winter '08
 Kim

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