Question

Sometimes labor unions try to increase the demand for the product they produce. They do so because the demand for labor is derived; and the __________ the demand for the product labor produces, the __________labor and the __________ wages will be, ceteris paribus.a. higher; greater the supply of; lowerb. higher; lower the demand for; higherc. higher; higher the demand for; higherd. lower; higher the demand for; highe

Answer 1

Answer:

c. higher; higher the demand for; higher.

Explanation:

Labor Union

A labor union is also known either trade union and workers' union and the organisation is a representation of the interests of workers or employees. Some specific functions and objectives of labor unions is to unit the workers and speak on their behalf on issues surrounding availability of work, wages, benefits and all other work conditions. Unions are most often grouped according to specific industries.

Based on the specific objectives of labor unions as mentioned, it is the interest of labor union to fight for higher wages as well as more demand for labor. Higher wages means higher conditions of living and more demand for labor means more employment opportunities. Therefore, making efforts to increase product demand will have ripple effect on demand for labor was well as higher wages.

Therefore, the higher the demand for the product labor produces, the higher the demand for labor and the higher wages will be, ceteris paribus