The More Inelastic the Consumer Demand for the Final Product

question 343

Multiple Choice

The more inelastic the consumer demand for the final product, the

• A) greater will be the economic profit in a competitive market.
• B) greater the impact on employment from a change in the wage rate.
• C) more inelastic the demand for labor producing the product.
• D) more responsive the output demand to a change in the price of labor.

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Definitions:

Consumption

The process of using goods and services to satisfy needs and wants.

Nonlabor Income

Income received from sources other than employment or work effort, such as dividends, interest, or rent.

Quinces

A fruit related to apples and pears, with a yellow exterior and hard flesh, often used in cooking and making preserves.

Kumquats

Small, orange-colored, and edible citrus fruits with a sweet outer peel and tart inner flesh, commonly eaten whole or used in marmalades and jellies.