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 non-unionized part of the painters' labor market?

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