Figure 14.4
-Suppose a labor market has perfectly inelastic supply that is composed of union and non-union workers,and both groups of workers earn the perfectly competitive wage.What happens to the equilibrium employment level and wage for non-union workers?
A)Both increase.
B)Employment increases and wage declines.
C)Wage increases and employment declines.
D)Both decline.

Question

Figure 14.4
-Suppose a labor market has perfectly inelastic supply that is composed of union and non-union workers,and both groups of workers earn the perfectly competitive wage.What happens to the equilibrium employment level and wage for non-union workers?
A)Both increase. 
B)Employment increases and wage declines. 
C)Wage increases and employment declines. 
D)Both decline.

Quizplus · Accepted Answer

The Answer of  Figure 14.4
-Suppose a labor market has perfectly inelastic supply that is composed of union and non-union workers,and both groups of workers earn the perfectly competitive wage.What happens to the equilibrium employment level and wage for non-union workers?
A)Both increase. 
B)Employment increases and wage declines. 
C)Wage increases and employment declines. 
D)Both decline.

Figure 14.4 -Suppose a Labor Market Has Perfectly Inelastic Supply That Is