A wage negotiated by an industrial union that is higher than the wage determined by demand and supply causes the quantity of labor employed to:

Question

Quizplus · Accepted Answer

When a wage is negotiated higher than the market wage determined by demand and supply, it results in an increase in the cost of labor for employers. This makes employers hire fewer workers or reduce the number of hours given to the existing workers. Therefore, the quantity of labor employed reduces.

A Wage Negotiated by an Industrial Union That Is Higher