Suppose That the Demand for Good Y and the Supply

question 51

Essay

Suppose that the demand for good Y and the supply of good Y both increase.
(a.) Is it possible to predict whether the equilibrium quantity of good Y will increase, decrease, or remain the same as a result of these changes? Why or why not?
(b.) Is it possible to predict whether the equilibrium price of good Y increase, decrease, or remain the same as a result of these changes? Why or why not?

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Definitions:

AFL-CIO

The American Federation of Labor and Congress of Industrial Organizations, a federation of unions that represents the interests of workers in various industries in the United States.

Union Membership

The status of being a member of a labor union, an organization that represents workers' interests to management in industries and businesses for purposes such as negotiating wages and working conditions.

Labor Union Membership

The enrollment of workers in an organization (labor union) that represents them in negotiations with employers over wages, benefits, and working conditions.

Collective Bargaining Agreement

A written legal contract between an employer and a union representing the employees, containing terms of employment, working conditions, and wage rates.