Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations: Lm = 1308–21Wm L, = 1215–22w, where L is labor (in number of workers), W is the wage (in pesos), and the subscripts denote the sector. The economy has 501 workers who are willing and able to work in either sector. Round answers to two places after the decimal when necessary. Suppose a union establishes itself in manufacturing and pushes the manufacturing wage to 52.02 pesos.

Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations: Lm = 1308–21Wm L, = 1215–22w, where L is labor (in number of workers), W is the wage (in pesos), and the subscripts denote the sector. The economy has 501 workers who are willing and able to work in either sector. Round answers to two places after the decimal when necessary. Suppose a union establishes itself in manufacturing and pushes the manufacturing wage to 52.02 pesos.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter30: The Labor Market

Section: Chapter Questions

Problem 13E

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