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Because the Demand for a Broadly Defined Product Line (Automobiles

Question 404

Multiple Choice

Because the demand for a broadly defined product line (automobiles, for example) is less elastic than the demand for a more narrow product category (Fords, for example) , a union will be better able to raise wages without large unemployment effects when


A) it has organized an entire industry rather than only one firm.
B) it organizes only a few firms in each industry.
C) it bargains with all firms in a narrow product line but ignores the rest of the industry.
D) only a small part of the industry that makes the broadly defined product is unionized.

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