If a union establishes a wage floor above the equilibrium wage in a typical,competitive labor market,...

If a union establishes a wage floor above the equilibrium wage in a typical,competitive labor market, what will be the result?

Question 22 options:

	an increase in wages and an increase in the quantity of workers employed
	an increase in wages and a decrease in the quantity of workers employed
	a decrease in wages and an increase in the quantity of workers employed
	a decrease in wages and a decrease in the quantity of workers employed

Expert Solution

Option 2

an increase in wages and a decrease in the quantity of workers employed

The wage floor attracts more workers in the market but the employer hires only at the wage for the quantity demanded so there is a surplus in the market which is called unemployment.

Rahul Sunny answered 2 years ago

28.)In a competitive labor market, if the supply of labor decreases how will the equilibrium wage...

28.)In a competitive labor market, if the supply of labor decreases how will the equilibrium wage rate and employment change? Wage Rate Employment a.) Increase Increase b.) Increase Decrease c.) Decrease Increase d.) Decrease Decrease e.) No change Decrease 29.)How will a decrease in demand for computer repairs impact the demand and wage rate for skilled computer technicians? Wage Rate Employment a.) Decrease Decrease b.) No change Decrease c.) Increase Decrease d.) Increase Increase e.) No change Increase 30.)Which of...

In a competitive labor market, if the Illinois government imposes a minimum wage that is above...

In a competitive labor market, if the Illinois government imposes a minimum wage that is above the market equilibrium wage, how does the minimum wage affect the amount of labor hours done by workers?

A. Minimum Wage in a Single Competitive Labor Market In a single competitive labor market, the...

A. Minimum Wage in a Single Competitive Labor Market In a single competitive labor market, the labor demand and labor supply curves are LD = 200 − 20w LS = 50 + 10w where we measure labor in terms of workers per hour, and the hourly wage is measured in dollars per worker. (a) Solve each equation for the wage w, and plot the resulting inverse labor demand and labor supply curves. Identify the market-clearing equilibrium. (b) The government imposes...

Which of the items below would likely cause wage levels to be above labor market equilibrium...

Which of the items below would likely cause wage levels to be above labor market equilibrium levels? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. An increased demand for agricultural exports causes GDP to increase. unanswered Workers for a large national retailer become unionized. unanswered A large employer in the region significantly increases its wage rates to reduce the turnover...

If the labor market was in equilibrium with a market wage of $10 an hour and...

If the labor market was in equilibrium with a market wage of $10 an hour and the state of NJ implement a min wage law of $15 an hour. Explain what type of policy Murphy implemented impact this will have on the market. (i.e price floor or price ceiling) Hint Draw the graph and explain in detail this markets the labor market will have.

In a competitive equilibrium, the equilibrium wage clears the market and everybody that is looking for...

In a competitive equilibrium, the equilibrium wage clears the market and everybody that is looking for a job can find one. But in reality, we observe quite widespread involuntary unemployment. 1. a) Describe how search frictions can generate unemployment in equilibrium. 2. b) Define structural unemployment and discuss how structural unemployment differs from frictional unemployment. 3. c) How can the generosity of the unemployment insurance benefit effect the length of the unemployment spell and the accepted wage offer? Use your...

If a price floor above the equilibrium price is imposed by government in a market: A....

If a price floor above the equilibrium price is imposed by government in a market: A. Shortages of the commodity will develop B. The quantity demanded will exceed the quantity supplied C. The quantity supplied will exceed the quantity demanded D. The free-market equilibrium price and quantity will still be realized

5) If the labor market was in equilibrium with a market wage of $10 an hour...

5) If the labor market was in equilibrium with a market wage of $10 an hour and the state of NJ implement a min wage law of $15 an hour. Explain what type of policy Murphy implemented impact this will have on the market. (i.e price floor or price ceiling) Hint Draw the graph and explain in detail this markets the labor market will have

Suppose that the equilibrium wage in the labor market is $8.00 per hour of labor. If...

Suppose that the equilibrium wage in the labor market is $8.00 per hour of labor. If a law increased the minimum wage from $7.25 to $10.00 per hour of labor, then A. both consumer surplus and producer surplus increase since the new price is higher. B. the resulting increase in producer surplus would be larger than any possible loss of consumer surplus. C. the resulting increase in producer surplus would be smaller than any possible loss of consumer surplus. D....

Minimum wage laws, labor unions, and the efficiency wage theory may explain the presence of above-equilibrium...

Minimum wage laws, labor unions, and the efficiency wage theory may explain the presence of above-equilibrium wages in a free market (Mankiw, 2018, pp. 390-391). Explain how each phenomenon leads to above-equilibrium wages. Note that the description provided on the textbook is rather short. You may need to conduct additional research by going back to some previous chapters or conducting research outside our textbook. Do you best to apply each of situations you may be familiar with or may have...

Question