Which of the following is most likely to be associated with a strong union?
A) The demand for the products produced by the unionized labor is highly elastic.
B) There are few good substitutes for the products produced by the unionized labor.
C) It is easy to substitute capital for the labor of the union members.
D) Union labor composes a large proportion of the total cost of the product that they help produce.

Question

Quizplus · Accepted Answer

When there are few good substitutes for the products produced by unionized labor, the union has more bargaining power, as consumers have limited alternatives and are more likely to continue purchasing the product even if prices rise due to higher wages.

Which of the Following Is Most Likely to Be Associated