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5. Consider an economy with two labor markets one for manufacturing workers and one for service worker. Suppose initially that neither is unionized. a. If

5. Consider an economy with two labor markets one for manufacturing workers and one for service worker. Suppose initially that neither is unionized.

a. If manufacturing workers formed a unon, what impact on the wages and unemployment in manufacturing would you predict?

b. How would these changes in the manufacturing labor market affect the supply of labor in the market for service workers? What would happen to the equilibrium wage and employment in this labor market?

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