The existence of a union
A) affects labour demand only.
B) affects labour supply only.
C) has no effect on labour supply and demand.
D) can affect both labour supply and labour demand.

Question

Quizplus · Accepted Answer

Unions can influence both labour supply and demand. They can affect labour supply by negotiating for better wages and working conditions, which can attract more workers to the industry or occupation. They can also affect labour demand by negotiating terms that might lead employers to adjust the number of employees they hire, either by increasing costs that lead to fewer hires or by improving productivity that could lead to more hires.

The Existence of a Union