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:

Transfer Warranties

Legal assurances provided during the transfer of assets, ensuring certain conditions or elements are true or will be upheld.

Note

A short written record intended to assist the memory or serve as a temporary communication.

Primarily Liable

Being directly responsible or obligated in a legal or financial context, often referring to the party most accountable for fulfilling an obligation.

Authorized

Having official permission or power to do something or for something to take place.