Suppose the union’s resistance curve is summarized by the following data. The union’s initial wage demand is $10 per hour. If a strike occurs, the wage demands change as follows:Length of Strike: Hourly Wage Demanded1 month $92 months 83 months 74 months 65 or more months 5Consider the following changes to the union resistance curve and state whether the proposed change makes a strike more likely to occur, and whether, if a strike occurs, it is a longer strike.a. The drop in the wage demand from $10 to $5 per hour occurs within the span of two months, as opposed to five months.b. The union is willing to moderate its wage demands further after the strike has lasted for six months. In particular, the wage demand keeps dropping to $4 in the sixth month, $3 in the seventh month, and so on.c. The union’s initial wage demand is $20 per hour, which then drops to $9 after the strike lasts one month, $8 after two months, and so on.
Suppose the union’s resistance curve is summarized by the following data. The union’s initial wage demand is $10 per hour. If a strike occurs, the wage demands change as follows:
Length of Strike: Hourly Wage Demanded
1 month $9
2 months 8
3 months 7
4 months 6
5 or more months 5
Consider the following changes to the union resistance curve and state whether the proposed change makes a strike more likely to occur, and whether, if a strike occurs, it is a longer strike.
a. The drop in the wage demand from $10 to $5 per hour occurs within the span of two months, as opposed to five months.
b. The union is willing to moderate its wage demands further after the strike has lasted for six months. In particular, the wage demand keeps dropping to $4 in the sixth month, $3 in the seventh month, and so on.
c. The union’s initial wage demand is $20 per hour, which then drops to $9 after the strike lasts one month, $8 after two months, and so on.
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