Author Question: If a union successfully restricts the supply of labor to the firm but the union has no effect on the ... (Read 194 times)

Collmarie · **on:** Jun 29, 2018

If a union successfully restricts the supply of labor to the firm but the union has no effect on the demand for labor, then the

A) wage increases and there is no change in employment.
B) wage increases and employment increases.
C) wage increases and employment decreases.
D) wage increases and there is an unambiguous effect on employment.

Question 2

California is the sole producer of almonds in the United States. Suppose the price for a pound of almonds has increased during the past year. It is also predicted that almond prices will remain high. Over time, we predict that the

A) elasticity of supply will increase.
B) elasticity of supply will decrease.
C) elasticity of supply will remain constant.
D) elasticity of supply will increase and then decrease.