Ceteris Paribus, What Is Likely to Happen in the Union

Multiple Choice

Ceteris paribus, what is likely to happen in the union and nonunion labor markets if a state passes a right-to-work law?

A) Union wages are likely to fall, and nonunion wages are likely to rise as firms switch demand to nonunion workers.
B) Union wages are likely to rise, and nonunion wages are likely to fall as firms switch demand to nonunion workers and more nonunion workers enter the labor market.
C) Union wages are likely to rise, and nonunion wages are likely to fall as union members decide to leave the union.
D) Union wages and nonunion wages are likely to fall, since the law would prohibit unions, leading to an overall increase in the supply of labor.