Suppose that in some country neither textile workers nor shoemakers are unionized. If textile workers unionize and so are able to raise their wages, what will most likely happen to shoemakers?
A) The demand for shoemakers will rise, and their wages will rise.
B) The demand for shoemakers will fall, and their wages will fall.
C) The supply of shoemakers will rise, and their wages will fall.
D) The supply of shoemakers will fall, and their wages will rise.

Question

Quizplus · Accepted Answer

When textile workers unionize and raise their wages, some workers might switch from textile to shoemaking due to the relative attractiveness of non-unionized sectors, increasing the supply of shoemakers and potentially lowering their wages.

Suppose That in Some Country Neither Textile Workers nor Shoemakers