The trade union in a manufacturing sector successfully negotiates a wage increase from W2 W_2\,W2 to W3W_3W3. All other things being equal, the level of unemployment in this labour market will increase by:
| Wage Level | Quantity of Labour Demanded (DLD_LDL) (thousands) | Quantity of Labour Supplied (SLS_LSL) (thousands) |
|---|---|---|
| W3W_3W3 | 65 | 90 |
| W2W_2W2 | 72 | 85 |
| W1W_1W1 | 80 | 80 |
5,000
7,000
12,000
25,000
64 exam-style questions on AQA A Level Economics 1.6 The labour market (A-level only), covering 1.6.1 The demand for labour, marginal productivity theory, 1.6.2 Influences upon the supply of labour to different markets, 1.6.3 The determination of relative wage rates and levels of employment in perfectly competitive labour markets, 1.6.4 The determination of relative wage rates and levels of employment in imperfectly competitive labour markets, 1.6.5 The Influence of trade unions in determining wages and levels of employment, 1.6.6 The National Minimum Wage, and 1.6.7 Discrimination in the labour market. Each one has a worked solution and a mark scheme showing where the marks go.