Before the airline industry was deregulated, the Airline Pilots Association (ALPA) was generally regarded as one of the most successful unions in raising wages of its members; the International Ladies Garment Workers Union (ILGWU), on the other hand, had only limited success in raising wages.

a) Use at least one of the four Marshall-Hicks laws of derived demand to explain this difference in effectiveness between the unions.

b) After deregulation of the airline industry, over 40 new airlines began business. What was the likely effect of this on the elasticity of demand for airline pilots? Explain.