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
-Suppose there is a competitive market for retail workers at a large shopping mall that is large enough to constitute its own labour market. The labour demand curve is QD = 1000 - 20w). The labour supply curve is QS = 400 + 40w). Suppose that a union now successfully organizes the workers at this mall and obtains a wage rate of $11 but does not affect the demand curve). The number of workers employed after unionization is

Question

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
-Suppose there is a competitive market for retail workers at a large shopping mall that is large enough to constitute its own labour market. The labour demand curve is QD = 1000 - 20w). The labour supply curve is QS = 400 + 40w). Suppose that a union now successfully organizes the workers at this mall and obtains a wage rate of $11 but does not affect the demand curve). The number of workers employed after unionization is

Quizplus · Accepted Answer

To find the number of workers employed after unionization, substitute the union wage rate of $11 into the demand curve: QD = 1000 - 20(11) = 1000 - 220 = 780.

The Diagram Below Shows the Supply and Demand for Labour