Suppose that butchers and bakers have no unions. Now suppose the butchers form a union. Whatdoes this do the labor supply of and wages of bakers?

The formation of a union by butchers could potentially have several effects on the labor supply and wages of bakers, depending on various factors. Here's a step-by-step analysis:

1. Union Formation and Wage Increase for Butchers: When butchers form a union, they gain collective bargaining power. This could lead to higher wages for butchers as they can negotiate better pay and working conditions.

2. Labor Supply Shift: If the wages of butchers increase significantly due to the union, some bakers might decide to switch professions and become butchers. This would decrease the labor supply of bakers.

3. Wage Increase for Bakers: A decrease in the labor supply of bakers could lead to an increase in their wages. This is because the reduced supply of bakers could force bakery owners to increase wages in order to attract and retain their workers.

4. Market Equilibrium: However, the extent of these changes would depend on the elasticity of labor supply in both professions. If the supply is inelastic, the changes in wages might not be significant.

5. Other Factors: Other factors such as the skills required for each profession, the working conditions, and the preferences of the workers could also influence the labor supply and wages of bakers.

In conclusion, the formation of a union by butchers could potentially lead to a decrease in the labor supply and an increase in the wages of bakers. However, the actual impact would depend on various factors including the elasticity of labor supply and the specific conditions in the labor market.