Figure 19-4
-Refer to Figure 19-4. If a union is successful in reducing supply from S1 to S2, the wage will
A)rise from $15 per hour to $18 per hour and 100 fewer people will be employed.
B)rise from $15 per hour to $18 per hour and 200 more people will be employed.
C)fall from $15 per hour to $12 per hour and 100 more people will be employed.
D)fall from $18 per hour to $15 per hour and 200 fewer people will be employed.

Question

Figure 19-4 
-Refer to Figure 19-4. If a union is successful in reducing supply from S1 to S2, the wage will
A)rise from $15 per hour to $18 per hour and 100 fewer people will be employed. 
B)rise from $15 per hour to $18 per hour and 200 more people will be employed. 
C)fall from $15 per hour to $12 per hour and 100 more people will be employed. 
D)fall from $18 per hour to $15 per hour and 200 fewer people will be employed.

Quizplus · Accepted Answer

Reducing the supply of labor from S1 to S2 typically increases the wage rate due to decreased availability of workers, leading to a rise in wages from $15 to $18 per hour, and fewer people being employed as a result of higher wages.

Figure 19-4 -Refer to Figure 19-4. If a Union Is Successful in Is