If a union raises initiation fees significantly and if employers in the industry hire only union workers, the supply of union labor curve will shift to the left.

Question

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If initiation fees are increased significantly, fewer workers may be willing to join the union, thus reducing the supply of union labor available. This will lead to a leftward shift in the supply of union labor curve. If employers only hire union workers, this will increase demand for union labor, but the shift in supply will still result in higher wages for union employees.

If a Union Raises Initiation Fees Significantly and If Employers