Asked by
Christopher Mergen
on Nov 26, 2024Verified
Which of the following statements is true? Other things equal, the demand for labor will be less elastic the
A) easier it is to substitute capital for labor.
B) greater the elasticity of resource supply.
C) greater the elasticity of product demand.
D) smaller the ratio of labor costs to total costs.
Elasticity of Resource Supply
A measure of how responsive the quantity supplied of a resource is to a change in price.
Elasticity of Product Demand
The degree to which the demand for a product changes in response to a change in its price.
Labor Costs
The total expenditure by businesses for paying their employees, including wages, benefits, and taxes.
- Comprehend the principle of how resource demand elasticity operates and the determinants influencing it.
- Recognize the link between the elasticity of labor demand and the elasticity of the corresponding product demand.
Verified Answer
AN
Learning Objectives
- Comprehend the principle of how resource demand elasticity operates and the determinants influencing it.
- Recognize the link between the elasticity of labor demand and the elasticity of the corresponding product demand.
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