Labor unions are restrained in their wage demands because
A) legislation limits annual increases in nominal wages to 6 percent.
B) the labor demand curve is downsloping.
C) marginal wage cost curves lie above labor supply curves in most labor markets.
D) most unions deal with monopsonists who have superior bargaining power.

Question

Quizplus · Accepted Answer

Labor unions are restrained in their wage demands because the labor demand curve is downsloping, meaning that higher wages can lead to reduced employment as employers hire fewer workers.

Labor Unions Are Restrained in Their Wage Demands Because