Suppose That a Union Successfully Negotiated a 10 Percent Wage

question 46

Multiple Choice

Suppose that a union successfully negotiated a 10 percent wage increase and the quantity of labor demanded decreased by 10 percent. Given a fixed labor demand curve, we can conclude that

• A)the labor demand curve is upsloping.
• B)labor demand is elastic.
• C)labor demand is unit-elastic.
• D)the coefficient of elasticity of labor demand is less than 1.

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Definitions:

Sales And Excise Taxes

Taxes placed on the sale or manufacture of goods and services, collected by the government.

Products

Goods or services that are created through a process and offered in the market to satisfy customer needs or desires.

Tax Level

The rate at which income, goods, services, or transactions are taxed by governments, influencing economic behaviors and revenue.

Sales And Excise Taxes

Taxes imposed by governments on the sale of goods and services, with excise taxes being specialized taxes on specific goods.