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Commerce · Q150

Economics

Graduate and Post Graduate · Commerce · question 150

Q150

Union leaders are in better position to bargain for higher wages if demand for labour is

A.
Elastic
B.
Inelastic
Answer
C.
Very large
D.
Permanent

Answer: Option B

Solution

Answer: Option B
Solution:
Union leaders are in better position to bargain for higher wages if demand for labour is Inelastic. The capacity of trade unions to raise wages in a particular industry depends on the elasticity of demand for labour.