Which of the Following Would Increase the Demand for Labor

question 16

Multiple Choice

Which of the following would increase the demand for labor?

• A) a decrease in the product price
• B) a decrease in the product price and a labor-saving machine acquisition
• C) an increase in the product price
• D) an increase in the product price and a labor-enhancing machine acquisition
• E) a decrease in the product price,an increase in the product price,and a labor-saving machine acquisition

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Definitions:

Elastic

A term used in economics to describe the sensitivity of the demand or supply of a good or service to changes in its price.

Perfectly Inelastic

A situation in which the quantity demanded or supplied does not change regardless of any change in price.

Fixed Number

A specific, unchanging quantity that does not vary under different conditions or over time.

Supply Curve

A graph showing the relationship between the price of a good and the amount of it that producers are willing to supply at those prices.