Which of the following factors will reduce considerably the ability of a union to raise the wages of its workers?
A) an elastic demand for the goods produced by union labor
B) a five-year apprenticeship before one can qualify for jobs held by union members
C) high tariffs on goods produced by the union labor
D) favoritism in the allocation of government contracts to firms that employ union labor

Question

Quizplus · Accepted Answer

An elastic demand for goods produced by union labor means that consumers are responsive to changes in price, making it difficult for the union to negotiate higher wages without driving up the cost of the goods and reducing demand. This reduces the union's ability to raise wages significantly. B, C, and D are not directly related to the union's ability to negotiate higher wages.

Which of the Following Factors Will Reduce Considerably the Ability