To lower the elasticity of demand for labor, a labor union might attempt to
A)decrease the availability of substitutes for the products union workers produce.
B)increase the availability of substitutes for the products union workers produce.
C)increase the availability of substitute factors for union labor.
D)a and c
E)b and c

Question

Quizplus · Accepted Answer

Decreasing the availability of substitutes for the products union workers produce makes those products more inelastic in demand, indirectly making the demand for the labor that produces those products also more inelastic. This is because if there are fewer substitutes for a product, consumers are less likely to switch away from that product if its price increases, which means there is a more stable demand for the labor that produces it.

To Lower the Elasticity of Demand for Labor, a Labor