Which of the following indicates the number of workers who are willing to work but are unemployed at the optimal union wage rate in Figure 31.1?
A) Zero.
B) 6.
C) 14.
D) 22.

Question

Which of the following indicates the number of workers who are willing to work but are unemployed at the optimal union wage rate in Figure 31.1?
A) Zero. 
B) 6. 
C) 14. 
D) 22.

Quizplus · Accepted Answer

At the optimal union wage rate, the demand for labor is equal to the supply of labor. In Figure 31.1, this occurs at a wage rate of $12. At this wage rate, 20 workers are willing to work (shown by the horizontal line at $12 on the supply curve), but the union has demanded a wage rate of $14. This means that 14 workers are willing to work at the union wage rate but cannot find a job since the quantity demanded of labor (6 workers) is less than the quantity supplied (20 workers). Therefore, the answer is C, which indicates that 14 workers are willing to work but are unemployed at the optimal union wage rate.

Which of the Following Indicates the Number of Workers Who