Suppose That a Union Successfully Negotiated a 10 Percent Wage

question 106

Multiple Choice

Suppose that a union successfully negotiated a 10 percent wage increase and the quantity of labor demanded increased by 10 percent. We can conclude that

• A) the labor demand curve must have independently shifted to the right.
• B) labor demand is highly elastic.
• C) the coefficient of labor demand elasticity is less than 1.
• D) labor demand is unit-elastic.

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