When a union bargains successfully with employers,in that industry,
A)both the quantity of labor supplied and the quantity of labor demanded increase.
B)both the quantity of labor supplied and the quantity of labor demanded decrease.
C)the quantity of labor supplied increases and the quantity of labor demanded decreases.
D)the quantity of labor demanded increases and the quantity of labor supplied decreases.

Question

Quizplus · Accepted Answer

When a union successfully bargains with employers, they are able to negotiate higher wages and better working conditions for their members. This leads to an increase in the quantity of labor supplied because more workers are attracted to the industry due to the improved wages and conditions. However, employers may respond to these higher wages by reducing the quantity of labor demanded, as labor has become more expensive for them. Therefore, the quantity of labor demanded may decrease. Overall, there is a potential for a decrease in the quantity of labor demanded, while the quantity of labor supplied increases.

When a Union Bargains Successfully with Employers,in That Industry