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.In market 2,the wage rate __________ because __________.
A) falls;workers are less productive
B) rises;workers are more productive
C) falls;the supply of workers increases
D) falls;demand for the output falls
E) rises;the union may come there next
Correct Answer:
Verified
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