6. Consider two hypothetical states that operate under different laws governing labor unions.

The following graph shows the labor market in a state in the West. Initially, the market-clearing wage in this state is $8.00 per hour.

Now, suppose that the General Assembly in this western state passes a law that makes it easier for workers to join a union. Through collective bargaining, the union negotiates an hourly wage of $10.00.

Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.

Graph Input Tool ? 16 Market for Labor 14 Supply Wage 2.00 (Dollars per hour) 12 Labor Demanded 1,400 Labor Supplied 200 (Thousands of (Thousands of 10 workers) workers) WAGE (Dollars per hour) 8 6 4 Demand 2 0 0 200 400 600 800 1000 1200 1400 1600 LABOR (Thousands of workers)Enter $10.00 into the box iabeied Wage on the previous graph. Hint: Be sure to pay attention to the units used on the graph. At the union wage, :' union workers will be employed. The following graph shows the labor market in a state in the East. Suppose the legislature in this state passes strong "right-to-work'r laws that make it very difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Assume that with the exception of this difference in legislation, the western and eastern states are extremely similar. The initial position of the graph corresponds to the initial labor market condition in the eastern state before the labor union negotiated the new, higher wage for workers in the western state. Suppose that after the wage goes up in the western state, some workers in the western state lose theirjobs and decide to move to the eastern state. Adjust the graph to show what happens to employment and wages in the eastern state. O Supply Demand O Supply WAGE Demand LABORWhich of the following groups are better off as a result of the union action in the western state? Check all that apply. C] All workers in the western state C] Workers in the western state employed at the union wage C] Workers who find new jobs in the eastern state C] The original workers in the eastern state