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In the aviation logistics sector, there are employees who are part of a labour market union ...
In the aviation logistics sector, there are employees who are part of a labour market union and others who are not. It has been determined that the employees are homogeneous and that their jobs are identical, regardless of their union affiliation. The demand and supply curves in the union (U) sector are given by the equations: Jemand: LdU=1800−100W, Supply: LsU = 1000 The demand and supply curves in the nonunion (N) sector are given by the equations: Demand: LdN=1800−100W, Supply: LsN = 1000 The wage rate is W in R/hr and the number of workers per day is L. Assume that the union that operates in the aviation logistics sector succeeds in negotiating a wage for its members of R12 per hour. If the unionised workers who lost their jobs take jobs as non-unionised workers, the supply of labour in the nonunionised sector
a. shifts to the right, reducing wages in the nonunionised sector to R4 per hour. b. shifts to the left, reducing wages in the nonunionised sector to R2 per hour. c. shifts to the right, raising wages in the nonunionised sector to R14 per hour. d. shifts to the left, raising wages in the nonunionised sector to R12 per hour.