Assume the labor market for loggers is perfectly competitive?

Assume the labor market for loggers is perfectly competitive. How would each of the following events influence the wage rates loggers are paid?
a.Consumers boycott products made with wood.
b.Loggers form a union that requires longer apprenticeships, charges high fees, and uses other devices designed to reduce union membership?

Answer:
a.
If consumers boycott products made of wood, demand for logging will decline or become zero. Loggers will lose jobs. They have to seek emplyment elsewhere and in those sectors wages may fall because of increased supply of labor.
b. If loggers form a union, the market no more remains perfectly competitive. Under such circumstances the relative bargaining power will determine the direction of wages. If the labor becomes weak, cartelism by employers will lead to fall in wages.

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