Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 13 - Appendix - Appendix Problems - Page 292: 2a

Answer

${$33}$ per hour and $1200$ workers

Work Step by Step

The union was successful in negotiating the raise of $10\%$. The wage before was ${$30}$ per hour, but with a raise, it increases to $30\times 1.10=\$33$ per hour. However, in this situation, the number of employed workers decreases by $20\%$, so out of the initial $1500$ workers, the number of workers become: $1500\times (1-0.20)=1200.$
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