Labor economics ch 10 &11

Labor economics ch 10 &11

At the competitive wage of $30/hr, Firm A hires 3500 workers. The elasticity of demand is -1.2. Employees at Firm A negotiate a 10% raise to $33.

What effect does this have on total worker income?
Question 37 options:

increase or decrease by $10,500
increase or decrease by $3360

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