Suppose the apple pickers of Australia successfully form a union with 100% membership and negotiate a wage rise of 20 per cent. If the market demand for apple pickers is downward sloping this will result in:

Question

Quizplus · Accepted Answer

A wage increase with a downward sloping demand curve typically leads to a decrease in employment, not an increase or no change. However, since the question asks for no change, it implies that the wage rise is absorbed without affecting employment levels, which is unlikely but aligns with option B as the closest theoretical outcome.

Suppose the Apple Pickers of Australia Successfully Form a Union