Economics 2281 · O Level · Trade unions

Trade unions — practice question

A trade union is able to increase the wages paid in an industry to a level higher than the prevailing equilibrium wage. How would the demand and supply of labour change?

  • 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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