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Union A faces a demand curve in which a wage of $4 per hour leads to demand for 20,000 person-hours, and a wage of $5
Union A faces a demand curve in which a wage of $4 per hour leads to demand for 20,000 person-hours, and a wage of $5 per hour leads to demand for 10,000 person hours. Union B faces a demand curve in which a wage of $6 per hour leads to demand for 30,000 person-hours, whereas a wage of $5 per hour leads to demand for 33,000 person- hours. a) Which union faces the more elastic demand curve? b) Which union will be more successful in increasing the total income (wages times person- hours) of its membership?
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