Refer to the given data. Suppose that the union that provides labor to firms in this market successfully negotiates an increase in the wage rate from $10 to $12. As a result of the wage increase, firms will hire:

A.  fewer workers and the total paid out for wages will decline.

B.  fewer workers, but the total paid out for wages will increase.

C.  fewer workers, but the total paid out for wages will remain unchanged.

D.  more capital, if capital and labor are used in fixed proportions in production.

A.  fewer workers and the total paid out for wages will decline.