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The Diagram Below Shows the Supply and Demand for Labour

Question 63

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The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company.
The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company.    FIGURE 14- 4 -Refer to Figure 14- 4.Suppose this labour market is in a monopsonistic equilibrium.Then,suppose the workers form a union and negotiate a higher wage with the firm.In this case the wage will be and the employment will be . A) above $35 per hour; less than 750 units of labour B) $35 per hour; 750 units of labour C) between $25 and $35 per hour; between 750 and 1000 units of labour D) above $25 per hour; above or below 750 units of labour,depending on the negotiated wage E) $30 per hour; 1000 units of labour FIGURE 14- 4
-Refer to Figure 14- 4.Suppose this labour market is in a monopsonistic equilibrium.Then,suppose the workers form a union and negotiate a higher wage with the firm.In this case the wage will be and the employment will be .


A) above $35 per hour; less than 750 units of labour
B) $35 per hour; 750 units of labour
C) between $25 and $35 per hour; between 750 and 1000 units of labour
D) above $25 per hour; above or below 750 units of labour,depending on the negotiated wage
E) $30 per hour; 1000 units of labour

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