Suppose that after the wage goes up in the northern

This preview shows page 16 - 17 out of 17 pages.

Suppose that after the wage goes up in the northern state, some workers in the northern state lose their jobs and decide to move to the southern state. Adjust the graph to show what happens to employment and wages in the southern state.
Close Explanation
Explanation: The shortage of jobs in the northern state causes the population in the southern state to increase as people move there in search of jobs. An increase in population in the southern state shifts the supply curve to the right. This leads to an increase in the quantity of labor there and a decrease in the equilibrium wage. Which of the following groups are worse off as a result of the union action in the northern state? Check all that apply. Points: 1 / 1 Close Explanation

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture