Suppose that appliance factory workers and furniture factory workers are not unionized. If the furniture factory workers unionize, then
A)the wages of appliance factory workers will rise and the wages of furniture factory workers will fall.
B)the wages of furniture factory workers will rise and the wages of appliance factory workers will fall.
C)the wages of both appliance factory workers and furniture factory workers will rise.
D)the wages of both appliance factory workers and furniture factory workers will fall.

Question

Quizplus · Accepted Answer

When furniture factory workers unionize, it gives them more bargaining power to demand higher wages and better working conditions. This can lead to a decrease in the profits of the furniture factory, which may force them to reduce wages or lay off workers in order to maintain profits. Meanwhile, the lack of unionization in the appliance factory means that the wages there will not be affected by the unionization of the furniture factory workers. Therefore, the wages of furniture factory workers will rise and the wages of appliance factory workers will likely stay the same or even fall due to increased competition for jobs.

Suppose That Appliance Factory Workers and Furniture Factory Workers Are