LABOUR MANAGEMENT

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1. What effect does a lower elasticity of demand have on the wage and employment outcomes for the employer and the union?
(I think this is the right answer but pls review) In industries that are stable or declining and where the elasticity of demand for labor is high, unions will be weak because any increase in the wage will cause a sharp decrease in employment. In industries where demand for labor is inelastic and in industries that are growing, unions may be able to obtain higher wages without employment effects.
2. How is bargaining power influenced by deregulation and foreign competition? Deregulation enabled new companies to enter and created competition in wages between union and nonunion sectors of the industries
Who is most affected by these changes—labor or management?
3. Why are employers less likely to approve coalition bargaining than unions are
to approve multiemployer bargaining?
4. How do technological changes affect the relative bargaining power of the
parties?

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