If a union is able to organize workers in a competitive labor market but the union cannot affect the demand for its members' labor,then the wage rate ________ and the quantity of labor hired ________.
A) rises; increases
B) rises; decreases
C) rises; does not change
D) does not change; increases
E) falls; decreases

Question

Quizplus · Accepted Answer

In a competitive labor market, if a union organizes workers but cannot affect the demand for labor, the wage rate typically rises due to collective bargaining. However, the higher wage rate can lead to a decrease in the quantity of labor hired, as employers may seek to reduce costs or substitute labor with other inputs.

If a Union Is Able to Organize Workers in a Competitive