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Figure 20-3 A graph of Wage versus Labor shows a straight line, S, increasing linearly from the origin to (380, 250), and a second straight

Figure 20-3 A graph of Wage versus Labor shows a straight line, S, increasing linearly from the origin to (380, 250), and a second straight line, D, decreasing linearly from (0, 50) to (380, 2.5). A horizontal line extends from Wage = 20 and passes through (160, 20) on S and (240, 20) on D. A horizontal line extends from Wage = 25 and passes through the intersection of S and D on (200, 25). A horizontal line extends from Wage = 30 and passes through (160, 30) on D and (240, 30) on S. Refer to Figure 20-3. Suppose the manufacturing labor market, which is nonunionized, is in equilibrium at a wage equal to $25. Suppose now that the AFL-CIO (a labor organization) organizes the workers in the manufacturing market and negotiates a wage of $30 per hour. After the workers become unionized, how many workers do manufacturing firms collectively hire? a. There is not enough information to determine the number of workers. b. 160 workers c. 200 workers d. 240 workers

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