Exhibit 12-8 Which of the Following Does Exhibit 12-8

Multiple Choice

Exhibit 12-8 Which of the following does Exhibit 12-8 illustrate?

A) The demand for labor increases and wages increase when a union disbands.
B) The supply of labor increases and wages increase when a union disbands.
C) Demanders of labor must pay higher wages after a craft union forms.
D) Demanders of labor must pay higher wages after an industrial union forms.
E) A union causes the productivity of labor to increase, causing an increase in the firm's demand for labor.