- Fruitland has a competitive labour market for fruit pickers.
Equations for the labour demand and labour supply curves are as
follows, and the wage is given as dollars per week.
a. What is the equilibrium level of employment and the
equilibrium wage?
b. Suppose all workers join a union and they successfully
obtain a wage increase to $500 per week. (The demand
curve is not affected.) What is the number of workers
employed after unionization?
c. Given the increase in the wage in part (b), how many
workers wish to work at this new wage? How many
workers are unemployed?
16. The diagram below shows a supply-and-demand diagram for the
services of bike couriers in the downtown core of a large city.
Assume all deliveries are identical and the wage is the fee per
delivery.
QD = 7000 − 5 (w)
QS = 625 + 10 (w)