Firms with Union Contracts Do a Large Portion of the Painting

Multiple Choice

Firms with union contracts do a large portion of the painting jobs in the county. If the painters' union wins a 12 percent wage increase, what will most likely happen in the nonunionized part of the painters' labour market?

A) There will be no change in the nonunionized part of the painters' labour market because these sectors are not connected.
B) Many nonunion painters will likely find work for a firm with a union contract.
C) Nonunion painters will also get 12 percent wage increases.
D) Wage rates in the nonunion sector are likely to fall.