Unions Often Oppose Increases in the Prices of Complementary Inputs

question 138

Multiple Choice

Unions often oppose increases in the prices of complementary inputs. (For example, truck drivers may oppose increases in taxes on diesel fuel.) They do this because increases in the prices of complementary inputs might

• A) increase the supply of competing labor through the output effect.
• B) increase the supply of competing labor through the substitution effect.
• C) decrease the demand for union labor through the output effect.
• D) decrease the demand for union labor through the substitution effect.

---

Definitions:

Bait-and-Switch Advertising

A deceptive marketing strategy where a business advertises an attractive offer that is not genuinely available to induce customers to buy a more expensive item.

Bedroom Suites

Matching collections of furniture for bedrooms, typically including a bed, nightstands, dresser, and sometimes a wardrobe or vanity.

Special Low Price

A promotional or discounted pricing strategy used to attract customers by offering goods or services at below the regular price.

Importers Of Food

Entities that bring food products into a country from abroad, often subject to regulatory health and safety standards.