A union leader who claims that "higher wages increase living standards without causing unemployment" believes that the demand for labour is
A)income elastic.
B)income inelastic.
C)perfectly elastic.
D)perfectly inelastic.
E)unit elastic.

Question

Quizplus · Accepted Answer

The union leader's claim suggests that higher wages do not lead to unemployment, implying that the demand for labor does not decrease as wages increase. This is consistent with perfectly inelastic demand, where the quantity demanded does not change with price changes.

A Union Leader Who Claims That "Higher Wages Increase Living