In Some Markets Plumbers Have a Choice of Joining Unions

question 98

Essay

In some markets plumbers have a choice of joining unions or working as nonunion plumbers. The total short-run supply of plumbers is perfectly inelastic at 500 workers per day. The demands for nonunionized and unionized plumbers, respectively, are:
W_NU = 30 - 0.04L W_U = 30 - 0.10L.
The wage rate is W in $/hr. and the number of workers per day is L.
a. Determine the total demand for plumbers.
b. Calculate the total market wage rate of plumbers assuming that unionized and nonunionized plumbers get the same wage rate.
c. If the unionized workers succeeded in getting their wage increased to $20.00 per hour, how many unionized workers would lose their jobs?
d. If the unionized workers in (c) who lost their jobs take jobs as non-unionized workers, how much and in what direction would non-unionized wages change?

Manage document sections and breaks to organize content.

Modify text and object positions accurately within the document.

Integrate and manipulate pictures and text in complex layouts.

Grasp the concept of linking and utilizing text boxes for fluid text flow.

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Definitions:

Normative

Relating to an ideal standard or model, or based on what is considered to be the normal or correct way of doing something.

Milgram Experiment

A controversial study conducted in the 1960s, demonstrating people's willingness to obey authority figures, even to the point of inflicting harm on others.

Resist

To oppose or strive against something or someone; showing reluctance or opposition to accept or comply with changes, conditions, or regulations.

Experimenter

A person who conducts scientific tests and trials to explore hypotheses, investigate phenomena, or demonstrate principles.