A High Elasticity of Substitution Between Capital and Labor Implies

question 40

Multiple Choice

A high elasticity of substitution between capital and labor implies that labor demand will be:

• A)price elastic.
• B)unitary price elastic.
• C)price inelastic.
• D)more inelastic than capital demand.

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Definitions:

Business Support Products

Goods and services that help businesses operate more efficiently and effectively, ranging from software tools to consulting services and office supplies.

Product Line

A series of related products offered by a company.

Product Mix

The total assortment of products that a company offers for sale, which can vary by depth, breadth, and consistency.

Product Line

A group of related products marketed by a company under a single brand.