Asked by LeeAnn Tiffany on Jun 11, 2024
Verified
A union might increase the demand for the labor services of its members by:
A) decreasing the demand for the product it is producing.
B) decreasing the prices of complementary inputs.
C) decreasing the prices of substitute inputs.
D) increasing the prices of complementary inputs.
Complementary Inputs
Inputs or goods that are used together in production and whose demand is positively related, meaning an increase in the price of one decreases the demand for the other.
Substitute Inputs
Alternative resources or materials that can be used in the production process to replace others without significantly affecting the output.
- Gain an insight into the ramifications of constrained labor supply and demand approaches by unions.
Verified Answer
RR
Rosalinda RostroJun 15, 2024
Final Answer :
B
Explanation :
Decreasing the prices of complementary inputs can make the production process more cost-effective, potentially leading to an increase in production and thus an increased demand for labor.
Learning Objectives
- Gain an insight into the ramifications of constrained labor supply and demand approaches by unions.