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 - 20(w) . The labour supply curve is QS = 400 + 40(w) . 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 unemployed workers in this mall labour market becomes
A) 20.
B) 80.
C) 40.
D) 100.
E) 60.
Correct Answer:
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