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A union wage above equilibrium creates excess supply of labor, which means the number of workers wanting union jobs:
AFalls short of the jobs
BExactly matches the jobs
CCannot be measured here
DExceeds the jobs available
Answer & Solution
Correct answer: D. Exceeds the jobs available
1. Excess supply is defined by the gap between the two sides of the market.
2. The union wage is above what the equilibrium wage would otherwise have been.
3. The result is an excess supply of labor for union jobs.
4. Excess supply means quantity supplied exceeds quantity demanded at that wage.
5. So the number of workers wanting union jobs exceeds the jobs available.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 15 'Labor Markets and Income'_
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