Suppose That Florists and Landscape Workers Are Not Unionized

question 27

Multiple Choice

Suppose that florists and landscape workers are not unionized.If florists unionize,then the wages of

• A)florists will rise,and the wages of landscape workers will fall.
• B)florists will fall,and the wages of landscape workers will rise.
• C)both florists and landscape workers will rise.
• D)both florists and landscape workers will fall.

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Definitions:

Required Return

The minimum return that an investor expects to receive from an investment to compensate for its risk.

Stock Price

The cost of purchasing a share of a company's stock on the open market.

Constant Growth Rate

A stable rate at which a company's dividends or earnings are expected to grow over time, often used in valuation models.

Required Return

The lowest profit an investor anticipates making from an investment in a specific asset, considering its associated risk.