If a union succeeds in increasing the wage rate by restricting labor supply, then
A) all of its members will be better off.
B) some members may lose their jobs.
C) all of its members will be worse off.
D) more of its members will be employed.

Question

Quizplus · Accepted Answer

When a union succeeds in increasing the wage rate by restricting labor supply, employers may choose to hire fewer workers or replace workers with machines to cut costs, resulting in job losses for some union members. Therefore, some members may lose their jobs despite the higher wages for those who remain employed.

If a Union Succeeds in Increasing the Wage Rate by Restricting