Question

he table below shows the quantity demanded and supplied in the labor market for economics professors at the I'MaStateUniversity, where all the professors belong to a union. If the union has enough negotiating power to raise the annual salary by $20,000 more than a non- unionized university would be willing to pay, then there will be excess_____________________ of labor of _____________________ economics professors. Annual Salary Quantity of workers demanded Quantity of workers supplied $45,000 95 20 $55,000 80 30 $60,000 65 40 $75,000 50 50 $95,000 35 60 $100,000 20 70

Demand 25, supply 25, supply 50, demand 50.

Thanks!

Answer 1

Quantity dd Quantity ss 95 20 go 30 Annual salary * 45000 $ 55000 $60000 $75000 $95000 $ 100000 65 40 50 50 35 60 20 70 If the Union has to Paine the annual salon 20000 more than a would he to then there will be excess of labai 07 Enough negotiating power non- unionized Eniversity supply Economic professor Wage supply SURPLUS wage due to Union = $70 50 Demand At wage=$70 there in SURPLUS lie over supply due to high Wage from equilibrium 35 60 Quownly