Many unions attempt to raise the hourly wages received by their members by restricting the supply of workers firms can hire from.Assuming the demand for workers who belong to these unions is inelastic,this would cause:
A)wages of individual union members to decrease and the total (combined)income of union members to increase.
B)wages of individual union members and the total (combined)income of union members to decrease.
C)wages of individual union members to increase and the total (combined)income of union members to decrease.
D)wages of individual union members and the total (combined)income of union members to increase.

Question

Quizplus · Accepted Answer

When the supply of workers is restricted and the demand for those workers is inelastic, wages for individual union members increase because employers are willing to pay more for the limited labor available. Additionally, the total income of union members increases because the higher wages more than offset the reduced number of workers.

Many Unions Attempt to Raise the Hourly Wages Received by Their