The Demand for a Product Produced by a Union Becomes

question 164

Multiple Choice

The demand for a product produced by a union becomes more elastic. After this change, how does an increase in the wage rate paid its members affect their employment?

• A) It does not decrease employment at all.
• B) It decreases employment by less than it would have before.
• C) It decreases employment by more than it would have before.
• D) It increases employment.