Which of the following factors will reduce considerably the ability of a union to raise the wages of its workers?
A) An elastic demand for the goods produced by union labor.
B) A five-year apprenticeship before one can qualify for jobs held by union members.
C) High tariffs on goods produced by the union labor.
D) Favoritism in the allocation of government contracts to firms that employ union labor.

Question

Quizplus · Accepted Answer

An elastic demand for the goods produced by union labor means that consumers will significantly reduce their quantity demanded if prices (and thus wages) increase, limiting the union's ability to raise wages without causing job losses.

Which of the Following Factors Will Reduce Considerably the Ability