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Assume the labor market for fuel-efficient vehicle technologies in the United States is illustrated in the figure to the right. 35.00- If the United Auto

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Assume the labor market for fuel-efficient vehicle technologies in the United States is illustrated in the figure to the right. 35.00- If the United Auto Workers (UAW) union organizes these workers and negotiates a wage of 32.50- $22.50 an hour, what will be the resulting deadweight loss, if any, from the union-negotiated wage 30.00- compared to the competitive equilibrium? 27.50- 1.) Using the triangle drawing tool, shade in surplus for the employers (the consumers of labor) 25.00- Union Supply from the union-negotiated wages (CS) in the figure to the right. 22.50- 20.00- 2.) Using the triangle (PSTriangle) and rectangle (PSRectangle) drawing tools each once, shade in Wage (dollars per hour) 17.50- surplus for the workers (the suppliers of labor). 15.00- 3.) Using the triangle drawing tool, shade in deadweight loss (DWL) from the union-mandated 12.50- . . . wage 10.00- 7.50- Carefully follow the instructions above, and only draw the required objects. 5.00- Demand 2.50- 0.00- 0 50 100 150 200 250 300 Quantity (workers in 1000s)

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