Question

QUESTION 17 Refer to the following diagram, in which EC is the employer concession curve and UR is the union resistance curve. ЕС UR Expected strike length т* The model assumes that, as the expected length of a strike increases union wage demands increase and firm wage concessions decrease. Ounion wage demands fall and firm wage concessions increase. Ouncertainty about the union's resistance and the employer's concessions increases Ouncertainty about the union's resistance and the employer's concessions decreases. Wage

Answer 1

Option 2

Explanation: The curve shows that as the length of the strike increases, the union resistance falls and employer concession grows up.