Economics 0455 · IGCSE · Trade unions

Trade unions — practice question

A trade union manages to push wages in an industry above the existing equilibrium wage. In what way would the demand for labour and the supply of labour alter?

  • AChange in quantity of labour demanded: fall; change in quantity of labour supplied: fall
  • BChange in quantity of labour demanded: fall; change in quantity of labour supplied: rise
  • CChange in quantity of labour demanded: rise; change in quantity of labour supplied: fall
  • DChange in quantity of labour demanded: rise; change in quantity of labour supplied: rise

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