Suppose you are considering two possible summer jobs. One is with an outdoor painting company as a painter, the other is as a sales associate in an up-scale department store (please assume that you are in this strictly for the money, so ignore whether one job sounds inherently more or less attractive to you personally). Both jobs are union jobs, and both unions are presently negotiating for significant wage increases. You can't afford to get laid off half way through the summer, and the last people hired will be the first laid off if there is a layoff, so you are concerned about the elasticity of demand for labor for both employers. Which would probably be more elastic, and why?

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The Answer of Suppose you are considering two possible summer jobs. One is with an outdoor painting company as a painter, the other is as a sales associate in an up-scale department store (please assume that you are in this strictly for the money, so ignore whether one job sounds inherently more or less attractive to you personally). Both jobs are union jobs, and both unions are presently negotiating for significant wage increases. You can't afford to get laid off half way through the summer, and the last people hired will be the first laid off if there is a layoff, so you are concerned about the elasticity of demand for labor for both employers. Which would probably be more elastic, and why?

Suppose You Are Considering Two Possible Summer Jobs