The Demand for Unionized Labor Will Generally Be More Elastic

question 36

Multiple Choice

The demand for unionized labor will generally be more elastic, and it will be more difficult for the union to achieve above-equilibrium wages when

• A) there are no close substitutes for the unionized workers.
• B) the domestic producers of the good produced by the unionized workers face weak competition from foreign suppliers of the good.
• C) the cost of employing the unionized workers is a large part of the total cost of the product that they produce.
• D) the demand for the product produced by the unionized workers is highly inelastic.

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Definitions:

Periodic Inventory System

An inventory system that updates inventory balances after a set period by taking a physical inventory count.

First-In, First-Out (FIFO)

An inventory valuation method that assumes the first items placed into inventory are the first sold, affecting the cost of goods sold and inventory value.

Perpetual Inventory System

This inventory accounting technique immediately logs purchases or sales of inventory via computerized point-of-sale systems and enterprise asset management software.

Ending Inventory

The price of commodities accessible for purchase following the conclusion of an accounting session.