We would expect unions to have a more difficult time negotiating higher wages for their members when

Question

Quizplus · Accepted Answer

When the product produced has several close substitutes, consumers can easily switch to a substitute product if prices increase, making the demand for the product elastic. If labor costs increase, firms may respond by substituting other inputs or technologies, reducing the demand for labor and making it more difficult for unions to negotiate higher wages for their members.

We Would Expect Unions to Have a More Difficult Time