If a union successfully negotiates for higher wages and benefits for steel workers, what impact would this have on supply and demand in the market for steel, assuming no other changes take place in this market?
What will be an ideal response?
An increase in wages and benefits will shift the supply curve to the left, but will not shift the demand curve. This will increase the equilibrium price and decrease the equilibrium quantity in the market for steel.
Economics
You might also like to view...
When efficiency is attained, the sum of the total amount of consumer surplus and producer surplus is
A) minimized. B) maximized. C) equal to the deadweight loss. D) undefined. E) equal to zero.
Economics
Technological change that makes workers more productive should increase the demand for labor
Indicate whether the statement is true or false
Economics