Problem
Labor Demand Elasticity and Total Income. Suppose a union s objective is to maximize the total income of nurses (total money spent by firms on nurses). At the current wage, the price elasticity of demand for nurses is 0.75 (in absolute value).
a. Should the union increase or decrease the union wage? Explain.
b. Is there a trade-off between wages and total employment?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.