Exhibit 12-5 
Consider Exhibit 12-5.If a union imposes a wage floor at $5, then
A) the excess demand for labor will lead to unemployment
B) the excess supply of labor will cause the wage to fall to $4
C) fewer people will be hired than would be in a competitive market
D) the excess demand for labor will lead to a drop in wages
E) the excess demand for labor will lead to an increase in wages
Correct Answer:
Verified
Q144: If a union negotiates a wage above
Q145: An industrial union can obtain a wage
Q145: An industrial union can obtain a wage
Q147: If union demands result in a surplus
Q148: Exhibit 12-6 Q150: When industrial unions negotiate with an entire Q151: An industry with a strong union (e.g., Q152: If a teachers' union negotiates the wage Q153: Exhibit 12-6 Q154: Exhibit 12-6 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
