Suppose that grocery clerks and nurses are not unionized.If the nurses unionize then
A)the wages of both grocery clerks and nurses rise.
B)the wages of both grocery clerks and nurses fall.
C)the wages of grocery clerks rise and the wages of nurses fall.
D)the wages of nurses rise and the wages of grocery clerks fall.

Question

Quizplus · Accepted Answer

When nurses unionize, their bargaining power increases and they can demand higher wages from their employers. To pay for these higher wages, employers may need to cut costs in other areas, such as by reducing the wages of other non-unionized workers like grocery clerks. Therefore, the wages of nurses may rise while the wages of grocery clerks may fall.

Suppose That Grocery Clerks and Nurses Are Not Unionized