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Surgeons brotherhood faces an own-wage elasticity of demand

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The Brain Surgeons' Brotherhood faces an own-wage elasticity of demand for their labor that equals -0.1. The Dog Catchers' International faces an own wage elasticity of demand for their labor that equals -3.0. Suppose that leaders in both unions push for a 20 percent wage increase but have no power to set employment levels directly. Why might members of the Dog Catchers' International be more wary of the targeted wage increase?

Reference no: EM132347534

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