Which of the following factors will make it easier for a labor union to increase the wages of its members?
A) a highly inelastic demand for the products produced by the union labor
B) a readily available supply of similar products produced by nonunion labor
C) low tariffs and strong competition from foreign firms producing the products supplied by the union labor
D) a reduction in the demand for the products produced by the union labor

Question

Quizplus · Accepted Answer

If the demand for the products produced by the union labor is highly inelastic, it means that consumers are willing to pay higher prices for those products even if wages increase. This gives the union more bargaining power to negotiate for higher wages for its members.

Which of the Following Factors Will Make It Easier for a Labor