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1. Union A finds that a wage of $4 per hour leads to demand for 20,000 person hours and a wage of $5 per hour leads to demand for 10,000 person hours. Union B finds that a wage of $6 per hour leads to demand for 30,000 person hours, while a wage of $5 per hour leads to demand for 33,000 person hours.
a. Which union faces the more elastic demand curve? Describe 2 Hicks-Marshall laws that might explain that union's elasticity
b. Which union will be more successful in increasing the total income (wages times person hours) of its membership?
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Review the resources listed in the books and resources area below to prepare for this weeks assignments and complete the following spotlight on skills if you need assistance with the tools used to complete your assignments.
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