Answer Happy

The table below shows the quantity demanded and supplied in the labor market for economics professors at the I'MaState University, where all the professors belong to a union. Supply and demand schedule for economics professors Quantity of workers Quantity of workers Annual Salary demanded supplied $50,000 95 20 $60,000 80 30 $70,000 65 40 $80,000 50 50 $90,000 35 60 $100,000 20 70 a. If no union existed, what would be the equilibrium salary for economics professors? Justify your answer! b. If the union has enough negotiating power to raise the annual salary by $20,000 more than a non- unionized university would be willing to pay, how much would be the salary for economic professors? At this salary level, there will be a shortage or a surplus of how much economic professors?