The Demand for Labor Would Most Likely Become More Elastic

question 85

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) a decrease 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 costs to total costs.

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Definitions:

Selling Expenses

Costs associated with the marketing and sale of products or services, including advertising, sales commissions, and store fixtures.

Cash Available

Cash available refers to the liquid funds that a company or individual has on hand or in bank accounts, readily accessible for use.

Cash Disbursements

Payments made by a business, including operating expenses, purchase of assets, and other related outflows of cash.

Administrative Expense

Overhead or operational costs not directly linked to production but necessary for running the administrative aspects of a business.