union A faces a firm's demand curve in which a wage of $4 per hour leads...

union A faces a firm's demand curve in which a wage of $4 per hour leads to demand for 20,000 employee hours, and a wage of $5 per hour leads to demand for 10,000 employee hours. union B faces a different firm's demand curve in which a wage of $5 per hour leads to demand for 40,000 employee hours, and a wage of $6 per hour leads to demand for 30,000 employee hours.

A)calculate own wage elasticity of demand for each union's firm.

B) which union faces the more elastic curve? which union will be more successful in increase the total income of its membership?

C) suppose union A faces a single buyer of labor. what is the name for this type of labor market? draw the graph for this type of labor market

D) list 2 features of labor supply which can lead to this type of labor market.

Expert Solution

Rahul Sunny answered 2 years ago

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