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referred to as arc elasticity Union A faces a demand curve in which a wage of $4 per hour leads to an, employment level (quantity
referred to as arc elasticity Union A faces a demand curve in which a wage of $4 per hour leads to an, employment level (quantity demanded of labor) of 20,000 person-hours and a wage of $5.00 per hour leads to an employment level (quantity demanded of labor) of 10,000 person-hours. Union B faces a demand curve in which a wage of $6 per hour leads to an employment level (quantity demanded of labor) of 30,000 person-hours and a wage of $5.00 per hour leads to an employment level (quantity demanded of labor) of 33,000 person-hours. A. Which union faces the more elastic demand curve? B. Which union has a greater chance of successfully negotiating an increase in the total income of its membership
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