Question: . If workers are free to move between sectors, what relationship will there be between Wm and W5? . Suppose that the condition in part

. If workers are free to move between sectors, what relationship will there be between Wm and W5? . Suppose that the condition in part (1) holds and wages adjust to equilibrate labor supply and labor demand. Calculate the wage and employment in each sector. . Suppose a union establishes itself in manufacturing and pushes the manufacturing wage to $25. Calculate employment in manufacturing. . In the aftermath of the unionization of manufacturing, all workers who cannot get the highly paid union jobs move to the service sector. Calculate the wage and em- ployment in services. . Now suppose that workers have a reservation wage of $15that is, rather than tak- ing a job at a wage below $15, they would rather wait for a $25 union job to open up. Calculate the wage and employment in each sector. What is the economy's unem- ployment rate
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