6. Contrasting labour union laws in two provinces Consider two provinces that adopt different laws concerning labour unions. The following graph shows the labour market in a province in the east. Initially, the marketclearing wage there is $8.00 per hour. Suppose that the legislature in this eastern province passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $10.00 per hour. 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 (2/; 1s _. Market for Labour 14 Wage Supply (Dollars per hour) 2'00 1: 12 Labour Demanded Labour Supplied 8 (Thousands of 1'400 (Thousands of 200 f 10 workers) workers) 3 1n 5 8 T: E! LIJ 6 0 g 4 Demand 2 + I 0 -1 llllllli o 200 400 600 800 1000 1200 1400 1600 LABOUR (Thousands of workers) Enter $10.00 into the box labelled Wage to the right of the previous graph. Hint: Be sure to pay attention to the units used on the graph. At the union wage, 600,000 union workers will be employed. The following graph shows the labour market in a province in the west. The legislature in this province passes "strong righttowork laws" that make it very difcult for unions to organize workers, so the wage is always equal to the marketclearing value. Except for this difference in legislation, the two provinces are very similar. The initial position of the graph corresponds to the initial labour market condition in the western province before the labour union negotiated the new, higher wage for workers in the eastern province. Suppose that after the wage goes up in the eastern province, some workers in the eastern province lose theirjobs and decide to move to the western province. Adjust the graph to show what happens to employment and wages in the western province. A \\'T'J O S 1 Demand 82 El Supply UJ '2 2 Demand LABOUR Which of the following groups are worse off as a result of the union action in the eastern province? Check all that apply. C] All workers in the eastern province The original workers in the western province C] Workers who find new jobs in the western province Employers in the eastern province