Question: I'm having difficulty with this question. Sector A unionizes and raises the wage to $9 as shown. Suppose sector B is non-unionized and firms increase

I'm having difficulty with this question. Sector A unionizes and raises

I'm having difficulty with this question.

Sector A unionizes and raises the wage to $9 as shown. Suppose sector B is non-unionized and firms increase wages to $7. 12 12- WA11 11 10- 10 9- 9 8 8 7 7 6 6 5 5 4 4 3 3 2 2 DB 1 1 0 ' ' ' 0 ' ' 0123456789101112 0123456789101112 LA LB Submit Answer * In total, how much labour previously working in sectors A and B will need to either spill over into other sectors (unpictured) or enter wait unemployment? Answer: Submit Answer * What is the wage gap here? What is the counterfactual wage gain? Answer: Submit Answer Calculate the union-non-union differential which would be observed between workers in these two sectors. Do unions have a greater impact on fringe benefits or wages? Answer: Submit

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