Suppose That a Union Successfully Negotiated a 10 Percent Wage

Multiple Choice

Suppose that a union successfully negotiated a 10 percent wage increase and the quantity of labor demanded decreased by 10 percent. Given a fixed labor demand curve, we can conclude that

A) the labor demand curve is upsloping.
B) labor demand is elastic.
C) labor demand is unit-elastic.
D) the coefficient of elasticity of labor demand is less than 1.