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 who wish to work at the new wage 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 who wish to work at the new wage is

Quizplus · Accepted Answer

The labour supply curve is QS = 400 + 40w. Substituting w = 11, QS = 400 + 40(11) = 840.

The Diagram Below Shows the Supply and Demand for Labour