Other Things Being Equal, the Elasticity of Demand for Labor

question 21

Multiple Choice

Other things being equal, the elasticity of demand for labor will be greater the

• A) smaller the proportion of total costs accountable for by labor costs.
• B) smaller the elasticity of demand for the product it produces.
• C) larger the number of close substitute resources available.
• D) more rapid the decline in its marginal productivity.

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Definitions:

Exemption Clause

A clause in a contract that restricts or eliminates the responsibility of one party for specific violations or circumstances.

Minor Defects

Small flaws or imperfections that do not significantly impair an item's use or value.

Exemption Clause

A provision within a contract that limits or exempts a party's liability under certain conditions.

Faulty Steering Mechanism

A defect in a vehicle's steering system that can lead to loss of control, potentially causing accidents or injuries.