Unions are often able to raise wages above the market equilibrium because of their strong bargaining power.

Question

Quizplus · Accepted Answer

Unions represent a collective group of workers who can negotiate with employers for better wages, benefits, and working conditions. This bargaining power allows unions to push for wages above the market equilibrium, which is the point where the supply of labor equals the demand for labor. Therefore, the statement is true.

Unions Are Often Able to Raise Wages Above the Market