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Economics (AS & A Level) · May / June 2026 · Paper 32 · Question 12

9708Labour market forces and government intervention

What would help a trade union to negotiate an increase in the wage rate of its members without causing a reduction in the numbers employed?

  1. Aif labour costs are a major proportion of total costs
  2. Bif the demand for the labour employed is elastic
  3. Cif the demand for the good produced is elastic
  4. Dif the demand for the good produced is increasing

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Correct answer: D. if the demand for the good produced is increasing

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