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 Q_D= 1000 - 20(w).The labour supply curve is Q_S= 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 workers who wish to work at the new wage is

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Quizplus · Accepted Answer

The labor supply curve is Q_S = 400 + 40(w). Substituting the wage rate of $11 into the supply equation gives Q_S = 400 + 40(11) = 840.

Suppose There Is a Competitive Market for Retail Workers at a Large