Economy, asked by rowashamon, 2 months ago

A one-shot increase in wages due to a successful wage push by labor
unions causes​

Answers

Answered by 8br22samikshay
1

Unions are able to raise wages because, when they are powerful, they may turn the labor market into a monopoly market. ... The gap between the point where the new wage rate intersects the demand curve and where it intersects the supply curve represents the resulting unemployment.

Through collective bargaining, unions negotiate the wages that employers will pay. Unions ask for a higher wage than the equilibrium wage (found at the intersection of the labor supply and labor demand curves), but this can lower the hours demanded by employers.

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