312 Labor Human Resource Economics Problem Set 3: Labor Market Equilibrium 1.

312 Labor & Human Resource Economics Problem Set 3: Labor Market Equilibrium 1. Union A faces a demand curve in which 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 faces a demand curve in which a wage of $6 per hour leads to demand for 30,000 person hours, whereas a wage of $5 per hour leads to demand for 33,000 person hours. (a) Which union faces the more elastic demand curve?