Suppose a labour union enters a competitive labour market and is successful in raising wages above the competitive equilibrium level. In this situation,
A) those workers already employed will earn a lower wage than before.
B) employment in the industry will surely increase.
C) the market supply curve for labour will be upward sloping over its entire range.
D) the number of firms in the industry will increase and the demand for labour curve will shift to the right, causing a subsequent increase in the wage.
E) each firm in the industry will face a horizontal supply curve for labour at the union wage, up to the maximum quantity of labour that is prepared to work at that wage.
Correct Answer:
Verified
Q47: If there is only a single buyer
Q48: Q49: Suppose that a professional association strengthened the Q50: Q53: All of the following are classified as Q54: Labour- market discrimination, which keeps one group Q55: A minimum wage is said to be Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
![]()