Other Things Being Equal, If It Becomes More Difficult to Substitute

question 35

Multiple Choice

Other things being equal, if it becomes more difficult to substitute capital for labour in the production of cell phones, the demand curve for labour in that industry

• A) will become more elastic.
• B) will shift parallel to the left.
• C) will become more inelastic.
• D) will shift parallel to the right.
• E) will remain unchanged.

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Definitions:

Required Rate

The least yearly percentage yield that appeals to people or businesses to channel funds into a certain security or project.

Dividend Growth

The annual rate at which a company's dividend payments to shareholders increase.

Dividend Growth Rate

The annual growth percentage rate of dividends paid to shareholders by a company.

Expected Dividend

The dividend payment a shareholder anticipates to receive based on the company's current dividend policy or trends.