What are a couple of examples of political activities that the union can pursue to manipulate the firm's elasticity of labor demand using Marshall's rules of a derived demand?

Derived demand is a economic concept which states that demand for a commodity is driven from demand from another intermediate commodity. Example demand for petrol and diesel have increased because of increase in demand for automobiles. The term was first coined by Alfred Marshall I his book Principles of Economics. Labor Union is also known as workers? union and trade union. It is a collective union of all the workers in an organization that represents collective interests of the workers. Labor unions help workers unite to negotiate with employers over wages, hours, benefits, and other working conditions. Labor demand curve shows the quantity of labor the employer is readily hires at a given wage rate in a period of time keeping other factors constant.

If the wage rate increase the employer will hire fewer employees. The demand for labor will decrease and there will be a movement upward on the demand curve. On the contrary if the wage rate reduce the employer will want to hire more and more of employees the demand for labor will increase, and there will be downward movement along the demand curve.

Shifts in the demand curve for labor occur for many other reasons as well. Such as demand for labor is based on demand for the product. Example if the more of cars are consumed that is demand for cars are more there will be more demand for workers in the car industry. Therefore demand for labor is known as the derived demand.

The other political activities that labor union can pursue to manipulate firm?s elasticity of demand are, strikes, lockouts, delay in work, excessive sick leaves and many other.