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 $10.

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

x	y
0	6
1	7
2	8
3	9
4	10
5	11
6	12
7	13
8	14
9	15
10	16
11	17
12	18
13	19

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

Label "Labor (L) in thousands" at pixel coordinates (175,0).Label "Wage" at pixel coordinates (0,170).Label "Demand" at (1,10+1). Label "Supply" at ((13-6)/ 1,11). Label "" at (11,10).

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

thousand

Hint