If the United Auto Workers' Union Obtained a 15 Percent

question 25

Multiple Choice

If the United Auto Workers' Union obtained a 15 percent increase in the wages of its workers, employment in the auto industry would most likely fall if

• A) the demand for American-made automobiles was highly inelastic.
• B) American consumers considered foreign automobiles a poor substitute for American-made automobiles.
• C) the demand for American-made automobiles was highly elastic.
• D) the demand for American-made automobiles was increasing.

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