Problem
Suppose in an efficient bargaining framework, the union and firm have attained a particular equilibrium on the contract curve.
(a) What is the effect on wages and employment of an increase in the alternative wage?
(b) What is the effect on wages and employment of an increase in product demand?
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.