Suppose there are 94 workers in the economy, with overall labour supply LS=94. The labour demand in Sector A is given by LDA=1202.3wA and labour demand in Sector B is given by LB=943.9wB. 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 $30. Sector A will employ will spill over into sector B is equal to equal to $ The relative wage gap for union workers is % while the relative wage gain is 6. The counterfactual wage is $ If the contract curve is vertical when the wage is set at $30, workers will spill over into sector B and the wage in sector B will be wB=$ If the contract curve is not vertical, but 7 workers decide to wait in unemployment in sector A, the wage in sector B will be w B=$ Suppose there are 94 workers in the economy, with overall labour supply LS=94. The labour demand in Sector A is given by LDA=1202.3wA and labour demand in Sector B is given by LB=943.9wB. 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 $30. Sector A will employ will spill over into sector B is equal to equal to $ The relative wage gap for union workers is % while the relative wage gain is 6. The counterfactual wage is $ If the contract curve is vertical when the wage is set at $30, workers will spill over into sector B and the wage in sector B will be wB=$ If the contract curve is not vertical, but 7 workers decide to wait in unemployment in sector A, the wage in sector B will be w B=$