Suppose that neither textile workers nor shoemakers are unionized. If textile workers unionize, then the supply of shoemakers will
A)rise and their wages will rise.
B)rise and their wages will fall.
C)fall and their wages will fall.
D)fall and their wages will rise.

Question

Quizplus · Accepted Answer

If textile workers unionize, their wages are likely to increase, making textile jobs more attractive. This could lead to some shoemakers switching to textile work, increasing the supply of shoemakers and causing their wages to fall due to the increased labor supply in the shoemaking industry.

Suppose That Neither Textile Workers nor Shoemakers Are Unionized