Which of the following is not correct?
A)When a union is present in a labor market,wages may not be determined by the equilibrium of supply and demand.
B)Like any cartel,a union is a group of sellers acting together in the hope of exerting their joint market power.
C)When unions raise wages above equilibrium,the quantity of labor supplied decreases,and the quantity of labor demanded increases.
D)Most workers in the U.S.economy are not members of a union.

Question

Quizplus · Accepted Answer

When unions raise wages above equilibrium, the quantity of labor supplied decreases, and the quantity of labor demanded decreases as well due to higher costs for employers. Therefore, the statement "the quantity of labor demanded increases" is not correct.

Which of the Following Is Not Correct