If Energy and Unskilled Labor Are Gross Complements,an Increase in the Price

question 33

Multiple Choice

If energy and unskilled labor are gross complements,an increase in the price of energy will:

• A)increase the supply of unskilled labor,decreasing the unskilled wage
• B)increase the demand for unskilled labor,raising the unskilled wage
• C)decrease the demand for unskilled labor,decreasing the unskilled wage
• D)either increase or decrease the demand for unskilled labor,depending on the relative strengths of the output effect and the substitution effect

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