Economics Assignment: Impact of Labour Unions on Production

This economics assignment report examines the relationship between the labour market, wage rates, and product demand and supply, particularly focusing on the role of trade unions. The report begins with an introduction highlighting the impact of labour on production costs and how labour unions can influence wage levels. It then presents a background section discussing the methodology for analyzing this impact, including the selection of a company with a strong labour union and significant market share to understand the effects of wage changes on demand and supply. The analysis section details the research approach, including the use of secondary data and hypothesis testing to determine the correlation between wage rates and price levels. Finally, the conclusion summarizes the findings, assessing whether the labour market influences demand and supply and how labour unions affect wage rates. The assignment aims to provide a comprehensive understanding of how labour market dynamics impact production and market outcomes.

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the student
Name of the university
Author Note

1ECONOMICS ASSIGNMENT
Abstract:
Labour market can influence both demand and supply side of a particular product by changing
their wage rate. Moreover, a strong labour union can influence the wage rate of company. Hence,
it is important analyse the relation between wage with market demand and market supply of a
particular product and in this context, the researcher will discuss the role of trade union.

2ECONOMICS ASSIGNMENT
Table of Contents
Introduction:....................................................................................................................................3
Background:.....................................................................................................................................3
Analysis:..........................................................................................................................................3
Conclusion:......................................................................................................................................4
Reference:........................................................................................................................................5

3ECONOMICS ASSIGNMENT
Introduction:
Labour is one of the essential factors of production that can affect the price of the
product. If they demand for high wage then the producer increases the price level for each
product to compensate this extra cost (Liu et al.). In this context, the role of labour union is very
important as they influence other labours to demand more wage. Hence, under a production
system, the role of labour union is crucial (Ahlquist). Thus, it is very essential to analyse the role
of labour union under a particular production system and role of labour market to influence total
demand and supply of a particular product.
Background:
To analyse those impacts, the researcher needs to choose a particular company, which has
huge labour force with a strong labour union and have significant market share. Large share of
market indicates that the product of this company has huge demand among customers. Hence, a
decrease or increase in price can indicate the demand and supply side of this product.
Analysis:
To analyse the entire effects, the researcher needs to collect secondary data from this
particular company. At first, the research finds the relation between wage and price level. For
this, hypothesis testing will be beneficial. From, this the researcher can identify a relation
between labour market and its impact on demand and supply.

4ECONOMICS ASSIGNMENT
Conclusion:
In conclusion, the researcher needs to summarise the whole discussion with outcomes.
From this conclusion, a person can understand the entire scenario that whether labour market has
any impact on demand and supply or not and how labour union can influence labourers to
increase wage.

5ECONOMICS ASSIGNMENT
Reference:
Ahlquist, John S. "Labor unions, political representation, and economic inequality." Annual
Review of Political Science 20 (2017): 409-432.
Liu, Jenny X., et al. "Global health workforce labor market projections for 2030." Human
resources for health 15.1 (2017): 11.