If an exclusive union is successful in restricting the supply of labor, the
A) wage rate will rise.
B) quantity of labor demanded will rise.
C) number of job opportunities in the firm or industry will increase.
D) demand for labor curve will shift leftward.

Question

Quizplus · Accepted Answer

When a union restricts the supply of labor, it creates a scarcity of workers, which can drive up the wage rate. As fewer workers are available, employers may offer higher wages to attract the limited pool of workers. Thus, a successful exclusive union can lead to an increase in the wage rate.

If an Exclusive Union Is Successful in Restricting the Supply