Lumen OHM Assessment

Question 1

The graph below shows the supply and demand curves for workers in a perfectly competitive labor market. Suppose that the union increases the wage to $9.

Graphing window shows horizontal axis: 0 to 13, vertical axis: 0 to 13. Start Graph, Color red

x	y
0	4
1	5
2	6
3	7
4	8
5	9
6	10
7	11
8	12
9	13
10	14
11	15
12	16
13	17

Start Graph, Color blue

x	y
0	10
1	9
2	8
3	7
4	6
5	5
6	4
7	3
8	2
9	1
10	0
11	-1
12	-2
13	-3

Start Graph, Color black

x	y
0	9
1	9
2	9
3	9
4	9
5	9
6	9
7	9
8	9
9	9
10	9
11	9
12	9
13	9

Label "Quantity of Labor" at pixel coordinates (175,0).Label "Wage" at pixel coordinates (0,170).Label "Demand" at (1,10+1). Label "Supply" at ((13-4)/ 1,11). Label "" at (11,9).

As as result of this there will be

surplus of labor.
shortage of labor.
neither shortage or surplus of labor.

Hint

Question 2

The graph below shows the supply and demand curves for workers in a perfectly competitive labor market. Suppose that the union increases the wage to $8.

Graphing window shows horizontal axis: 0 to 13, vertical axis: 0 to 13. Start Graph, Color red

x	y
0	2
1	3
2	4
3	5
4	6
5	7
6	8
7	9
8	10
9	11
10	12
11	13
12	14
13	15

Start Graph, Color blue

x	y
0	12
1	11
2	10
3	9
4	8
5	7
6	6
7	5
8	4
9	3
10	2
11	1
12	0
13	-1

Start Graph, Color black

x	y
0	8
1	8
2	8
3	8
4	8
5	8
6	8
7	8
8	8
9	8
10	8
11	8
12	8
13	8

Label "Labor (L) in thousands" at pixel coordinates (175,0).Label "Wage" at pixel coordinates (0,170).Label "Demand" at (1,12+1). Label "Supply" at ((13-2)/ 1,11). Label "" at (11,8).

As as result of this how many workers will be unemployed?

thousand

Hint