Multiple Choice
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 2 is to make
A) all workers better off.
B) all workers worse off.
C) workers from 0 to L2 better off.
D) workers from 0 to L2 worse off and workers from L2 to L4 better off.
E) workers from L2 to L4 better off.
Correct Answer:
Verified
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