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

question 28

Multiple Choice

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 QD = 1000 - 20(w) .The labour supply curve is QS = 400 + 40(w) .Suppose that a union now successfully organizes the workers at this mall and obtains a wage rate of $13 (but does not affect the position of the demand curve) .One result is

• A)an increase in employment of 20 workers.
• B)a decrease in employment of 140 workers.
• C)a decrease in employment of 100 workers.
• D)an increase in employment of 60 workers.
• E)a decrease in employment of 60 workers.

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Definitions:

Government Agency

An organization run by the government designed to oversee and administer specific functions and regulations in the public sector.

For-Profit

Businesses or organizations that operate with the primary goal of making profits for their owners or shareholders.

Inventory Carrying Cost

The total costs associated with holding and storing unsold goods, including expenses such as warehousing, insurance, deterioration, and opportunity cost.

Long-Term Care Facility

A living arrangement for people who need constant care and significant assistance with daily living activities over an extended period.