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1. Union A finds that 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 finds that a wage of $6 per hour leads to demand for 30,000 person hours, while a wage of $5 per hour leads to demand for 33,000 person hours.
a. Which union faces the more elastic demand curve? Describe 2 Hicks-Marshall laws that might explain that union's elasticity
b. Which union will be more successful in increasing the total income (wages times person hours) of its membership?
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