A Union Might Increase the Demand for the Labor Services

question 306

Multiple Choice

A union might increase the demand for the labor services of its members by

• A) decreasing the demand for the product it is producing.
• B) decreasing the prices of complementary inputs.
• C) decreasing the prices of substitute inputs.
• D) increasing the prices of complementary inputs.

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Definitions:

Equilibrium Market Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, leading to a state of market balance.

Price Floor

A government- or authority-imposed minimum price below which a certain product cannot be sold, typically above the equilibrium price to ensure producers receive a minimum income.

Government

The organizational structure through which a society makes and enforces its public policies and exercises authority over its citizens.

Pencils

Writing or drawing instruments with a thin core of graphite or a similar substance encased in a protective casing.