Suppose That a Union Successfully Negotiated a 10 Percent Wage

question 165

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:

Customer Relationship Management

A strategy for managing an organization's interactions with current and future customers, using data analysis about customers' history with a company to improve business relationships.

Stockout

A situation where inventory is exhausted and items are unavailable for sale or use, often resulting in lost sales or delays.

Back Order

An order for a product that cannot be filled at the current time due to a lack of available stock, to be fulfilled once the item becomes available.