Suppose the United Auto Workers' Union Succeeded in Obtaining a 10

Multiple Choice

Suppose the United Auto Workers' Union succeeded in obtaining a 10 percent increase in the wages of its workers and that the wage increase caused automobile prices to rise. Employment in the auto industry would be most likely to decline significantly if

A) the demand for American-made automobiles was highly elastic.
B) the supply of foreign-produced automobiles was highly inelastic.
C) American consumers considered foreign automobiles a poor substitute for American automobiles.
D) the demand for American automobiles was relatively constant and highly inelastic.