Problems 1, 2, 3, 5. 1. Suppose that the employer concession schedule is W = 1 + 0.02S and that the union resistance curve is W=5 +0.02 - 0.015% where W = the percentage wage increase and S = the expected strike length in days. Using Hicks's simplest model, determine the length of the strike and the percentage wage increase. 2. 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? 3. Suppose that unionized workers in the retail sales industry earn $10 per hour and that nonunionized workers in the industry earn $8 per hour. What can be said about the relative wage advantage of unionized workers and the absolute effect of the union on its members' real wage? 5. Table 13P.5 gives the demand for labor at a chocolate factory. The factory is unionized, and the union is negotiating to raise the wage rate for its members from $14 per hour to $16 per hour. At the same time, more people are realizing how delicious the chocolate products produced at the factory are, resulting in an increase in the demand for the chocolate. The labor demand after the increase in the demand for the company's product is shown in column 3 Table 13P.5 Labor Demand at a Chocolate Factory Wage rate ($) Labor demand (original) Labor demand (new) 6 38 42 8 35 39 10 32 36 12 29 33 14 26 30 16 23 27 18 20 24 20 17 21 A company official announces, \"This wage increase will cost jobs in this factory!\" In response, a union leader asserts, \"What the company official said is incorrect; not a single union member will lose their job if the wage goes to $16\" Who is correct? Justify your