Suppose that the total aggregate supply of workers (all sectors combined) is given by S=110 workers. Suppose there are two sectors with labour demands given by DA=118-3wAand DB=118-3wB.

Assuming wages are equal across sectors, the competitive wage will be $(enter)andworkers will work in sector A andwill work in sector B.

Suppose sector A unionizes and raises the wage by $1. Now there will beworkers in sector A at wage $(enter)andworkers in sector B at wage $(enter).

The relative wage gap between the sectors will be equal to(enter). The union density will be%(enter).