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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

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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 market-clearing 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 16 Market for Labour 14 Supply oWage 2.00 ( Dollars per hour) Labour Labour Demanded Supplied (Thousands of (Thousands WAGE ( Dollars per hour) workers) of workers) Demand N 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, 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 right-to-work laws" that make it very difficult for unions to organize workers, so the wage is always equal to the market-clearing 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 their jobs and decide to move to the western province. Adjust the graph to show what happens to employment and wages in the western province.O Supply Demand Supply WAGE 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. Employers in the eastern province Workers who find new jobs in the western province Workers in the eastern province employed at the union wage The original workers in the western province

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