In the demand-enhancing union model,a union increases the wage rate by increasing labor demand through actions that increase product demand,raise labor productivity,or alter the prices of related inputs.

Question

Quizplus · Accepted Answer

In the demand-enhancing union model, the union aims to increase the demand for labor, and they can do this through strategies such as promoting their product, improving labor productivity, or adjusting the prices of other inputs. By doing so, they can increase the bargaining power of workers and negotiate for higher wages. Therefore, the statement is true.

In the Demand-Enhancing Union Model,a Union Increases the Wage Rate