(Answered) Suppose that the labor market has a perfectly inelastic

Economics

Suppose that the labor market has a perfectly inelastic supply consisting of union and non-union workers, and both groups of workers initially earns perfect competition. What happens at the level of the balance of work and wages for union workers if the union bargaining power drills?

a. Both Increase.

b. Employment increases and wage declines.

c. Wage increases and employment declines.

d. Both decline.

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