The table below shows the quantity demanded and supplied in…
The table below shows the quantity demanded and supplied in the labor market for nurses in the town of Neverland, where all nurses belong to a union. Supply and Demand Schedule for Neverland’s nurse labor market Wages per Hour Quantity Demanded of Workers Quantity Supplied of Workers $20 12,000 6,000 $25 10,000 7,000 $30 8,000 8,000 $35 6,000 9,000 $40 4,000 10,000 $45 2,000 11,000 Based on the table above, answer the following: What would the equilibrium wage and equilibrium quantity of workers be in this market if no union existed? Justify your answer! Assume that the union has enough negotiating power to raise the wage to $10 per hour higher than it would otherwise be. Is there now excess demand or excess supply of workers? Justify your answer!
Read DetailsThe table below shows the share of income going to each quin…
The table below shows the share of income going to each quintile of the income distribution for Neverland in 1980 and 1990. Complete the table below finding the the cumulative share of income for 1980 and 1990 and answer the following: Cumulative share of income for 1980 and 1990 Quintiles Share of income in 1980 Cumulative share of income in 1980 Share of income in 1990 Cumulative share of income in 1990 1st 7% 6.6.% 2nd 11.5% 11.5% 3rd 17% 16.3% 4th 24.8% 22.7% 5th 39.7% 42.9% Sketch the Perfect Equality line and the Lorenz curve for 1980 and for 1990. Don’t forget to label your graph and your curves! According to the Lorenz curves that you draw in (a), which year had worse income inequality, 1980 or 1990? Justify your answer!
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