Given below are the demand schedule and supply schedule for the labour market for supervisors. Remember that demand for labour represents the employers' demand for workers, while supply represents the workers' willingness to work. Graph the demand and supply curve on one graph and determine equilibrium in this market. STATE the equilibrium. Please state the wage and quantity that establishes equilibrium.

2. Calculate the coefficient of price elasticity of demand if the daily wage goes from $245 to $300. Is elasticity at this level inelastic or elastic?

3. Based on the elasticity you calculated in Question 2, would it be a good idea for a union to try to negotiate a large wage increase? How successful do you think a union will be