Suppose that wages paid to both factory workers and construction workers in a perfectly competitive factor market is $15 per hour.If the market for factory workers becomes unionized, you would expect:

Question

Quizplus · Accepted Answer

Unionization typically leads to higher wages for unionized workers, which can decrease the supply of workers willing to work at the previous wage rate, as they may hold out for higher wages.

Suppose That Wages Paid to Both Factory Workers and Construction