If union action leads to a rise in the relative price of factors that are substitutes for union labor,
A)the supply of union labor falls.
B)the quantity demanded of union labor falls.
C)the demand for union labor rises.
D)the supply of union labor rises.

Question

Quizplus · Accepted Answer

When the price of substitute factors increases, firms may find union labor relatively cheaper, leading to an increase in the demand for union labor.

If Union Action Leads to a Rise in the Relative