Question 1 of 5 Suppose there are 98 workers in the economy, with overall labour supply L3=98. The labour demand in Sector A is given by LA=121-2.1WA and labour demand in Sector B is given by LB=98-3.6WB. When graphed with the conventional axes, the slope of the aggregate labour demand curve is and its vertical intercept is . Assuming the neoclassical model of perfect competition holds, the competitive wage would be w=$ Suppose sector A unionizes and sets the wage at $28. Sector A will employ workers. The number of workers previously employed in sector A who will spill over into sector B is equal to . There will now be workers employed in sector B. The wage in sector B will be equal to $ . In this economy the union density is % The relative wage gap for union workers is % while the relative wage gain is %. The counterfactual wage is $ If the contract curve is vertical when the wage is set at $28, workers will spill over into sector B and the wage in sector B will be wg=$ If the contract curve is not vertical, but 9 workers decide to wait in unemployment in sector A, the wage in sector B will be Wg=$