In Which of the Cases Given Below Will the Elasticity

question 300

Multiple Choice

In which of the cases given below will the elasticity of demand for workers who produce yo-yos be most inelastic? The price elasticity of demand for yo-yos is

• A)5, and labor's share of total costs is 20 percent.
• B)5, and labor's share of total costs is 75 percent.
• C)0.1, and labor's share of total costs is 20 percent.
• D)0.1, and labor's share of total costs is 75 percent.