Question: discounting]. (e) (5 points) Suppose that, it' the railway built, after it is built the rail union can make a 'take-it-t leave-it' wage demand w

discounting]. (e) (5 points) Suppose that, it' the railway built, after it is built the rail union can make a 'take-it-t leave-it' wage demand w to HSR to apply just for labor new line. The railway's only choice is to accept to pay t: wage demand, w, or close the new line down. What den will the union make? Given this, if yo u were HSR, for wl' values of 1-: would you build the new line? Why is your answer different from that in part (b)? Now suppose tlL wage demand made after the railway is built is not a 'te orleaye-it' demand but rather part of negotiation. Sup

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