Figure 19-6
-Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The equilibrium market wage is $15. Suppose a labor union forms and subsequently negotiates an hourly wage of $25.00. Which of the following statements is true?
A)Widget workers benefit from having a higher wage.
B)Widget firms benefit from receiving a higher profit.
C)Widget firms will not hire any workers as a result.
D)There is no impact on the labor market from the higher negotiated wage.

Question

Figure 19-6 
-Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The equilibrium market wage is $15. Suppose a labor union forms and subsequently negotiates an hourly wage of $25.00. Which of the following statements is true?
A)Widget workers benefit from having a higher wage. 
B)Widget firms benefit from receiving a higher profit. 
C)Widget firms will not hire any workers as a result. 
D)There is no impact on the labor market from the higher negotiated wage.

Quizplus · Accepted Answer

The Answer of Figure 19-6 
-Refer to Figure 19-6. This figure depicts labor demand and supply for the widget industry. The equilibrium market wage is $15. Suppose a labor union forms and subsequently negotiates an hourly wage of $25.00. Which of the following statements is true?
A)Widget workers benefit from having a higher wage. 
B)Widget firms benefit from receiving a higher profit. 
C)Widget firms will not hire any workers as a result. 
D)There is no impact on the labor market from the higher negotiated wage.

Figure 19-6 -Refer to Figure 19-6. This Figure Depicts Labor Demand and Labor