Figure 12-3 -Refer to Figure 12-3. This Figure Depicts Labor Demand and Labor

Multiple Choice

Figure 12-3
-Refer to Figure 12-3. This figure depicts labor demand and supply in a nonunionized labor market. The original equilibrium is at point A. If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20, then there will be an excess

A) supply of 3,000 workers.
B) demand of 7,000 workers.
C) supply of 4,000 workers.
D) supply of 7,000 workers.