The Price Elasticity of Demand for Labor Will Be Greater

question 162

Multiple Choice

The price elasticity of demand for labor will be greater, the

• A) greater is the price elasticity of demand for the final product.
• B) more difficult it is to employ substitute inputs in production.
• C) smaller is the proportion of wage costs in the total cost of production.
• D) shorter is the time period under examination.

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Definitions:

Rent

A payment made periodically by a tenant to a landlord in exchange for the use of land, a building, or other property.

Property Taxes

Taxes levied by local governments based on the assessed value of real estate property.

Monthly Profit

The total amount of income a business generates in a month after all expenses have been subtracted from total revenue.

Target Return

A pricing strategy where the price is set based on a desired return on investment for a product or service.