If There Are a Number of Inexpensive Substitutes for Labor

question 38

Multiple Choice

If there are a number of inexpensive substitutes for labor in the production process, labor:

• A) demand will most likely be elastic.
• B) demand will most likely be inelastic.
• C) supply will most likely be elastic.
• D) supply will most likely be inelastic.

---

Definitions:

Dairy Products

Foods made from milk, including but not limited to cheese, yogurt, milk, butter, and ice cream, which are produced by mammals such as cows, goats, and sheep.

Chain-Style

A business model that involves establishing multiple outlets under the same brand and management, typically in different locations.

Federal Franchise Rule

A regulation established by the Federal Trade Commission that requires franchisors to provide full disclosure of material facts to prospective franchisees.

Contract Law

The body of law that governs agreements, obligations, and remedies between parties.