The workers in Market 1 and Market 2 are equally qualified;they can easily move between industries.
-Refer to the diagrams above.Suppose that a labour union forms in market 1 and succeeds in raising the wage to W1.The effect on workers in market 1 is to make

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When the wage in Market 1 increases to W1, workers from 0 to L3 (the shaded area) will be better off as their wages increase. However, workers from L3 to L1 will be worse off as they face a decrease in demand for their labor, leading to a decrease in their wages. Therefore, only workers from 0 to L3 will be better off and workers from L3 to L1 will be worse off, resulting in Choice D being the best answer.

The Workers in Market 1 and Market 2 Are Equally