If a Union Is Able to Decrease the Supply of Workers

question 11

Multiple Choice

If a union is able to decrease the supply of workers in a competitive labour market but the union cannot affect the demand for its members' labour, then

• A) wages and the quantity of labour hired will both decrease.
• B) wages will decrease but the quantity of labour hired will increase.
• C) wages and the quantity of labour hired will both increase.
• D) wages will increase but the quantity of labour hired will decrease.

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