Final answer:
If Amazon workers went on strike for higher wages, the supply of Amazon products would decrease due to the reduction in labor required to operate their business services. Strikes can result in an increase in equilibrium price and decrease in equilibrium quantity of products. Labor unions can lead to higher wages but potentially fewer jobs due to increased cost of labor.
Step-by-step explanation:
If Amazon workers went on strike for higher wages, the supply of Amazon products would decrease. This is because the labor that is necessary to process, package, and ship Amazon products would be significantly reduced or halted. Strikes disrupt normal business operations, resulting in fewer goods being produced or moved, which impacts supply levels.
In terms of the broader economic principles related to markets, a decrease in supply typically leads to an increase in the equilibrium price and a decrease in the equilibrium quantity. If we consider the labor market, a successful strike that leads to higher wages can reduce the quantity of workers that employers are willing to hire at the new, higher wage level. Meanwhile, the presence of labor unions can lead to higher pay for worker-members due to collective bargaining, though employers might respond by hiring a lower quantity of workers due to the increased labor costs.