When a union raises the wage above the equilibrium level,it
A)reduces both the quantity of labor supplied and the quantity of labor demanded.
B)reduces the quantity of labor supplied and raises the quantity of labor demanded.
C)raises the quantity of labor supplied and reduces the quantity of labor demanded.
D)raises both the quantity of labor supplied and the quantity of labor demanded.

Question

Quizplus · Accepted Answer

When a union raises the wage above the equilibrium level, it typically results in a higher quantity of labor supplied because more workers are willing to work at the higher wage. However, it reduces the quantity of labor demanded because employers are less willing to hire at the higher wage, leading to a surplus of labor or unemployment.

When a Union Raises the Wage Above the Equilibrium Level,it