Unions Often Oppose Increases in the Prices of Complementary Inputs

question 138

Multiple Choice

Unions often oppose increases in the prices of complementary inputs. (For example, truck drivers may oppose increases in taxes on diesel fuel.) They do this because increases in the prices of complementary inputs might

• A) increase the supply of competing labor through the output effect.
• B) increase the supply of competing labor through the substitution effect.
• C) decrease the demand for union labor through the output effect.
• D) decrease the demand for union labor through the substitution effect.

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