Assuming the Wage-Employment Tradeoff Exists, If Labor in a Particular

question 72

Multiple Choice

Assuming the wage-employment tradeoff exists, if labor in a particular geographic area is homogeneous and the unionized workers successfully negotiate a higher wage rate, then

• A)nonunion workers will also experience an increase in their wages.
• B)nonunion workers will not be affected by what happens in the unionized labor market.
• C)the nonunion labor market will experience an increase in the number of workers, and this will cause wage rates to decrease in this market.
• D)nonunion workers will become members of the union that has just negotiated a wage increase because they want higher wages.

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Definitions:

Elastic

A term used in economics to describe a situation where the quantity demanded or supplied of a good is sensitive to changes in its price.

Price Elasticity

An indicator showing the demand for a good's responsiveness to its price alterations.

Consumer Purchases

Transactions in which individuals buy goods or services for personal use or consumption.

Elastic Demand

A market condition where the quantity demanded of a good or service significantly changes in response to changes in its price.