Suppose There Are Four Industries

question 82

Multiple Choice

Suppose there are four industries. Labor costs are 80 percent of total costs in industry A, 60 percent in B, 45 percent in C, and 10 percent in D. In which of these industries will a 10 percent increase in the price of labor reduce quantity demanded of labor by the largest proportion?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Fibrocartilage

A tough type of cartilage found at the intersections of tendons, ligaments, and bones, providing strength and flexibility.

Cartilaginous Joints

Types of joints where the bones are joined by cartilage, allowing for limited movement.

Hyaline Cartilage

A type of connective tissue found in the body that is smooth and glass-like, providing support and flexibility in joints and respiratory structures.

Skull

The bone structure that forms the head in vertebrates, supports the structures of the face, and protects the brain.