-Refer to Above Figure

question 14

Essay

-Refer to above figure. Why would workers not shift from agriculture to manufacturing in the initial situation where wages are higher in the latter?

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Definitions:

Elastic Supply

A situation where the quantity supplied changes significantly in response to changes in price.

Elastic Demand

A situation where the demand for a product or service significantly changes in response to a change in price.

Inelastic Supply

A situation where the quantity supplied of a good is not significantly affected by a change in price.

Elastic Demand

A market condition where the demand for a product is sensitive to price changes, meaning that a small change in price results in a large change in the quantity demanded.