What does the existence of labor unions mean for the labor market and for unemployment?

Question

Quizplus · Accepted Answer

The existence of labor unions means that workers have collective bargaining power, which allows them to negotiate for higher wages and better working conditions. This can cause wage rates to rise above the equilibrium level determined by supply and demand. However, this can also lead to higher unemployment as employers may be less willing to hire as many workers at those higher wages. The other choices are not necessarily true as labor unions can coexist with some level of unemployment and may not be the sole cause of unsustainable unemployment levels.

What Does the Existence of Labor Unions Mean for the Labor