According to the economic theory of labor markets, if unions are successful in raising wages, with no accompanying increase in labor productivity, then which of the following is true?
A. The quantity of labor demanded by profit-maximizing firms will decline.
B. The quantity of labor demanded by profit-maximizing firms will increase.
C. The quantity of labor supplied by workers will decline.
D. There will be a shortage of labor in the unionized labor market.
Answer: A
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