Assume that a labour strike ends and that the union is successful in negotiating a substantial raise in pay for its workers. Concerns are raised about the motivation of the union and the possible negative employment consequences of the expensive labour contract.

a)Discuss the various possible objectives for the union.

b)The opponents of unions typically cite the labour demand theory to support their claim that the union is destroying jobs.Explain their argument. Present a graph.

c)Supporters of unions believe that the union does not destroy jobs when they bargain for higher wages.Analyze their proposition. Include a diagram.