1) If a union is able to organize workers in a competitive labor market but the
ID: 1207221 • Letter: 1
Question
1) If a union is able to organize workers in a competitive labor market but the union cannot affect the demand for its members' labor, then the wage rate ________ and the quantity of labor hired ________. A) rises; does not change B) does not change; increases C) falls; decreases D) rises; decreases E) rises; increases
The figure above shows a firm's VMP curve.
2) Suppose that the price of the product rises. As a result, A) the curve shifts leftward. B) there is a movement downward along the curve, such as a movement from point C to point D. C) the curve shifts rightward. D) there is a movement upward along the curve, such as a movement from point C to point B. E) More information is needed to answer the question.
3) If both the demand for labor and the supply of labor increase, then the equilibrium wage rate ________ and the equilibrium quantity of labor ________. A) falls; increases B) falls; decreases C) might rise, fall, or not change; increases D) rises; increases E) rises; might increase, decrease, or not change
Choose the one alternative that best completes the statement or answers the question. If a union is able to organize workers in a competitive labor market but the union cannot affect the demand for its members' labor, then the wage rate___________ and the quantity of labor hired____________. rises; does not change does not change; increases falls; decreases rises; increases Suppose that the price of the product rises. As a result. the curve shifts leftward there is a movement downward along the curve, such as a movement from point C to point D. the curve shifts rightward there is a movement upward along the curve, such as a movement from point C to point B More information needed to answer the question If both the demand for labor and the supply of labor increase, then the equilibrium wage rate_____ and the equilibrium quantity of labor____________ falls, increases falls, decreases might rise, fall, or not change, increases rises; increases rises; might increase, decrease, or not changeExplanation / Answer
1) Then the wage rate increases and employment decreases because union can affect labour supply and it can restrict supply to increase wage rate.
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