a) Describe the labor market outcome at point Z and compare it with the labor market equilibrium at point X. [5 points]b) Explain the economic factors that could lead the labor market to be at point Z instead of at point X. [5 points]c) Describe the labor market outcome at point Y and compare it with the labor market equilibrium at point X. [5 points]

The diagram of the labour model depicted below compares the labour market outcomes when there are no trade unions, i.e., where wages are bargained between firms and individual workers (point X) with two cases, points Z and Y, where wages are bargained between firms and trade unions.  a) Describe the labor market outcome at point Z and compare it with the labor market equilibrium at point X. [5 points]b) Explain the economic factors that could lead the labor market to be at point Z instead of at point X. [5 points]c) Describe the labor market outcome at point Y and compare it with the labor market equilibrium at point X. [5 points]d) Explain the economic factors that could lead the labor market to be at point Y instead of at point X. [5 points]

Consider the following model of the labour market:Labour supply:  =  ×  + Labour demand:  =  − The endogenous variables area)  and b)  and the equilibrium wage, c)  and the equilibrium wage, d) the equilibrium quantity of labor, , and wage, e)  and the equilibrium quantity of labor, 

Identify THREE decisions faced by firms in the economy and theinformation in which they are based. (3 marks)d) Using a suitable illustration, explain what happens to a producer inthe long run when scale of production increases. (7 marks)Q2. a) Explain how a market equilibrium position is attained when we havea market disequilibrium.

Recall the labour market model. Consider now an increase in the degree of competition faced by the firms in the economy in the short term. Which of the following statements is correct regarding the effect of increased competition in the short term?Select the two correct answersGroup of answer choicesThe price-setting curve shifts downThe markup shrinks, increasing the share of output that can be claimed by the workersThe equilibrium real wage increasesThe wage-setting curve shifts down

1) The market in which the equilibrium level of aggregate output is determined is theA) labor market.B) bond market.C) money market.D) goods market.