What preference would a union have with regard to the price elasticity of demand for the good or service produced by the employer:
A) highly elastic demand
B) highly inelastic demand
C) no preference
D) slightly elastic demand
E) slightly inelastic demand

Question

Quizplus · Accepted Answer

Unions would prefer the demand for the good or service produced by the employer to be highly inelastic. This means that changes in price have a minimal effect on the quantity demanded. Therefore, if wages increase (leading to higher costs and potentially higher prices), the decrease in quantity demanded would be minimal, helping to secure jobs and potentially higher wages for union members.

What Preference Would a Union Have with Regard to the Price