Wage Rate Quantity of Labor Demanded $ 16 800 14 1,000 12 1,200 10 1,400 8 1,600 Refer to the given data. Suppose that the union that provides labor to firms in this market successfully negotiates an increase in the wage rate from $12 to $14. As a result of the wage increase, firms will hire Multiple Choice more capital, if capital and labor are used in fixed proportions in production. fewer workers, and the total paid out for wages will remain unchanged. fewer workers, and the total paid out for wages will decline. fewer workers, and the total paid out for wages will increase.
