The Demand for Labor Would Most Likely Become More Elastic

question 119

Multiple Choice

The demand for labor would most likely become more elastic as a result of:

• A) a decrease in the elasticity of the demand for the product that the labor produces.
• B) an increase in the time for employers to make technological changes or purchase new equipment.
• C) a decrease in the proportion of labor costs to total costs.
• D) an increase in the proportion of labor cost to total costs.

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Definitions:

Additional Output

Refers to the extra amount of production a company or economy can generate when it utilizes additional resources or inputs.

Guaranteed Contracts

Agreements that ensure certain terms, such as payment or service delivery, regardless of future circumstances or performance.

Salaries

Regular payments made to employees for their labor or services, typically expressed as annual amounts but paid in smaller increments such as monthly or biweekly.

Variable Cost

Expenses that change in proportion to the level of production or sales in a company.