6. Consider the market for milk. Suppose that dairy workers form a union and receive a $3...
Question:
6. Consider the market for milk. Suppose that dairy workers form a union and receive a $3 per hour wage increase. What will happen now?
&a. The demand for milk will increase, causing the equilibrium price and quantity to increase.
&b.The demand for milk will decrease, causing the equilibrium price and quantity to decrease
&c. The supply of milk will decrease, causing the equilibrium price to increase and the equilib rium quantity to decrease.
&d.The supply of milk will increase, causing the equilibrium price to decrease and the equilib rium quantity to increase.
&e. The demand for milk will increase and the supply of milk will decrease, causing the equi librium price to increase and the equilibrium quantity to increase.
Step by Step Answer:
Fundamentals Of Economics
ISBN: 9781133956105,9781285531847
6th Edition
Authors: William Boyes, Michael Melvin