If Unskilled Labor and Capital Are Substitutes

question 18

Multiple Choice

If unskilled labor and capital are substitutes,

• A) the demand for unskilled labor increases when the price of capital decreases.
• B) the cross-elasticity between unskilled labor and capital is positive.
• C) the price of unskilled labor decreases when the price of capital increases.
• D) the price of capital is increasing.
• E) the demand curve for capital is upward sloping.

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