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If the Automobile Workers' Union Successfully Negotiates a Wage Increase

Question 321

Multiple Choice

If the automobile workers' union successfully negotiates a wage increase for its members,how does the wage hike affect the supply of automobiles?


A) The supply increases.
B) The supply decreases.
C) The quantity supplied increases.
D) The quantity supplied decreases.
E) Both answers B and D are correct.

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