If Robotics and Factory Automation Become More Widespread in an Industry

question 22

Multiple Choice

If robotics and factory automation become more widespread in an industry and all else is held constant:

• A) both the demand for labor in that industry and the wage rate should increase.
• B) both the demand for labor in that industry and the wage rate should decrease.
• C) the demand for labor should decrease in that industry and the wage rate should increase.
• D) the demand for labor should increase in that industry and the wage rate should decrease.

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Definitions:

Monopolist

A single seller in a market, possessing significant market power, and facing little to no competition in offering a unique product or service.

Elastic Segment

A section of the demand curve where consumers are highly responsive to changes in price, indicating elasticity of demand.

Elastic Segment

A portion of the demand curve where consumers are highly responsive to changes in price.

Inelastic Segment

A portion of the market where the demand for a product or service is relatively unresponsive to changes in price.