Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form unions. What does this do to the labor supply and wages of landscaping workers?

A) Both labor supply and wages increase.
B) Labor supply increases, and wages decrease.
C) Labor supply decreases, and wages increase.
D) Both labor supply and wages decrease.

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Princess Nazarene Joy Cafirma · Accepted Answer

Final Answer : B, Explanation :  When garbage collectors form unions, they typically negotiate for higher wages, making garbage collection a more attractive job. This can lead some workers who might have chosen landscaping (due to similar skill requirements) to opt for garbage collection instead, increasing the labor supply in garbage collection and decreasing it in landscaping. However, with more workers leaving landscaping for garbage collection, the reduced supply of landscaping workers can lead to lower wages in the landscaping sector due to an oversupply of labor relative to demand.

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