Use the following to answer question(s): Labor Market

-(Exhibit: Labor Market) Given competitive market demand curve D and union members supply curve S, an increase in the demand for the union-made product will result in a:

Question

Use the following to answer question(s): Labor Market
 
-(Exhibit: Labor Market) Given competitive market demand curve D and union members supply curve S, an increase in the demand for the union-made product will result in a:

Quizplus · Accepted Answer

An increase in the demand for the union-made product will result in a shift in the demand curve to D′, as shown in the exhibit. The quantity demanded at each price will increase, increasing the equilibrium price and quantity. The supply curve S remains unchanged. The new equilibrium point is at E′ where the new demand curve intersects the original supply curve S.

Use the Following to Answer Question(s): Labor Market