Answer:
b. both the quantity of labor supplied and unemployment rise
Explanation:
The labor market operates under the logic of balancing labor supply and labor demand. The adjustment vector for this balance is the price of wages. When a union of unions forces wages up, naturally more workers will offer work because they see an opportunity that benefits them. However, the higher salary is a cost to firms, which have hired fewer employees and eventually fired. Therefore, both labor supply and unemployment increase.
