Question

In Figure 29-2, suppose that We is a wage rate of \(30 per hour, and WU is a wage rate of \)40 per hour. In addition, QD is 12,000 workers per hour, Qe is 15,000 workers per hour, and QS is 18,000 workers per hour. If each worker hired corresponds to a job available within the unionized industry, how many jobs must the union ration at the wage rate WU? What is the shortage of jobs?

Short answer

The shortage of jobs is $6000$.

Step-by-step solution

Given Information

At the point when the unions expect higher pay and proportion of the positions in the unionized business, there will be an overabundance supply of work, as less work is utilized in the business, which prompts more noteworthy joblessness.

Explanation

Given,

$W_e=\$30$per hour and $W_u=\$40$per hour

$Q_D=12000$workers per hour and $Q_e=15000$workers per hour$Q_s=18000$per hour

The wage rate is = $15000-12000=3000$

The shortage of jobs is calculated as,

$$\begin{gathered} Q_s-Q_D=18000-12000 \\ =6000 \end{gathered}$$