Question

If a labor union successfully restricts the supply of labor to​ firms, and if the union is not able to influence the demand for​ labor, then the wage rate​ _______ and employment​ _______.

(A) ​falls; increases
(B) ​rises; decreases
(C) ​rises; remains constant
(D) ​falls; might​ increase, decrease, or remain constant

Answer 1

(B) ​rises; decreases

Step-by-step explanation:

• As the labors are unable to motivate the other laborers of the firm in the organization then the wage rate will increase the form needs more and more laborers to work in the factory or the production units and hence the employment opportunities will decline as an upward movement along the demand curve.