When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

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When a union raises the wage above the equilibrium level, it increases the quantity of labor supplied (more people want to work at the higher wage) and decreases the quantity of labor demanded (employers want to hire fewer workers at the higher wage), potentially resulting in unemployment.

When a Union Raises the Wage Above the Equilibrium Level