1) The Airline Pilots Association has always been regarded as one of the most successful unions in raising the wages of its members; the International Ladies Garment Workers Union, on the other hand, has had only limited success in raising wages. a. Use at least three of Marshall’s rules of derived demand to explain this difference. Suppose that U.S. laws are changed so that foreign airlines are allowed to fly domestic routes. What is the likely effect of this change on the elasticity of demand for pilots represented by the Airline Pilots Association? Which of Marshall’s rules does this involve? Explain. 2) Assume that other things being equal, unions are more likely to attract workers when the elasticity of labor demand is small. What if you knew that in Firm A the quantity of labor demanded is 15,000 when the wage is $11 and 17,000 when the wage is $8, while at firm B the quantity of demanded for labor is 20,000 when the wage is $12 and 30,000 when the wage is $11. Which firm is more likely to be organized by the union?