The following table gives the demand for labor at a chocolate factory. The factory is unionized, and the union is negotiating to raise the wage rate for its members from

$7 per hour to $8 per hour. At the same time, more people are realizing how delicious the chocolate products produced at the factory are, resulting in an increase in the demand for the chocolate. The labor demand after the increase in the demand for the company’s product is shown in column 3.

A company official announces, “This wage increase will cost jobs in this factory!”
In response, a union leader asserts, “What the company official said is incorrect;
not a single union member will lose his or her job if the wage goes to $8.” Who is correct? Justify your answer.

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Wage Rate ($) 3 4 5 6 7 8 9 10 Labor Demand (Original) 38 35 32 29 26 23 20 17 Labor Demand (New) 42 39 36 33 30 27 24 21