Suppose that grocery clerks and nurses are not unionized. If the nurses unionize, then
A)the wages of both grocery clerks and nurses will rise.
B)the wages of both grocery clerks and nurses will fall.
C)the wages of grocery clerks will rise and the wages of nurses will fall.
D)the wages of nurses will rise and the wages of grocery clerks will fall.

Question

Quizplus · Accepted Answer

When nurses unionize, it gives them more bargaining power which usually leads to wage increases. However, since grocery clerks are not unionized, there is no change in their wages. This means that the increase in the wages of nurses will come at the expense of grocery clerks. Therefore, the wages of nurses will rise while the wages of grocery clerks will fall.

Suppose That Grocery Clerks and Nurses Are Not Unionized