The diagram illustrates demand for and supply of labour in the construction industry. At first, the labour market is in equilibrium at wage W1. A trade union wants a higher wage but does not want employment to fall. The union demands wage W2. The employers propose wage W3. Which policy would be most suitable for helping the trade union to achieve both of these aims?
- Aaccept W3 and a new equilibrium F
- Bcontinue to ask for W2 and a new equilibrium G
- Ckeep W1 with a new equilibrium H
- Dincrease marginal revenue productivity and a new equilibrium E