If there is a decrease in the demand for union electrical workers and at the same time there is a drastic cutback in the numbers of electricians trained by the union, then the
A) wages of electricians are likely to increase and the quantity employed will decrease.
B) wages of electricians are likely to increase and the quantity employed will increase.
C) quantity employed will increase, but the effect on wages is indeterminate.
D) quantity employed will decrease, but the effect on wages is indeterminate.

Question

Quizplus · Accepted Answer

If there is a decrease in demand for union electrical workers and a cutback in the numbers of electricians trained by the union, the quantity of electricians employed is likely to decrease. However, the effect on wages is indeterminate since it depends on other factors such as the availability of non-union electricians and the level of competition among employers.

If There Is a Decrease in the Demand for Union