If the trade union in a factory that produces good X goes on an indeﬁnite strike, which of the following is likely to happen?
A) The supply curve for good X will shift to the right.
B) If demand remains unchanged, the equilibrium quantity of good X will increase.
C) If demand remains unchanged, the equilibrium price of good X will increase.
D) The demand curve for good X will shift to the right.

Question

Quizplus · Accepted Answer

When the trade union in a factory goes on an indefinite strike, production of good X is likely to decrease, leading to a decrease in supply. If demand remains unchanged, this decrease in supply would typically lead to an increase in the equilibrium price of good X, as there is less of the good available to meet the existing demand.

If the Trade Union in a Factory That Produces Good