T12:18 3B19BREAZ eee 2O 88% mm) # owl.uwo.ca Page 50f 18 QUESTION 5 Draw the union indifference curves (iso-utility curves) for the following situations: a) Wages and employment are perfect substitutes. b) There is a minimum wage below which union members will not reduce their wages in order to increase employment. c) Atthe current level of employment within the union, unions attach more disutility to a given employment reduction than the utility they attach to a corresponding employment increase. d) As their wealth increases, union members attach more weight to job security than to real income gains. e) The union objective is to maximize the wage bill. f) The union objective is to maximize total economic rent. Page 6 of 18