What happens when a Trade Union is Implemented in a Perfectly Competitive Labour Market?

-The Wage Rate and Supply is Set by where MRP = MC -When a Trade Union joins, the Workers can Negotiate for a Higher Wage - one that is more Expensive for the Firm- -The Higher Wage Rate can lead to Cutbacks in the Employment Force, and so Unemployment occurs -The Amount of Unemployment caused depends on the Elasticity of the Labour Demand Curve.