Suppose that garbage collectors and landscaping workers have no unions.Now suppose that garbage collectors form unions.What does this do to the labor supply and wages of landscaping workers?
A)Both labor supply and wages increase.
B)Labor supply increases,and wages decrease.
C)Labor supply decreases,and wages increase.
D)Both labor supply and wages increase

Question

Quizplus · Accepted Answer

When garbage collectors form unions, their collective bargaining power increases, allowing them to negotiate for higher wages and better working conditions. As a result, some landscaping workers may leave their jobs to become garbage collectors, causing a decrease in labor supply for landscaping jobs. This, in turn, may lower wages for landscaping workers. Therefore, labor supply increases for garbage collectors, but decreases for landscaping workers, causing wages to decrease for landscaping workers.

Suppose That Garbage Collectors and Landscaping Workers Have No Unions