If the Price of Capital Rises,in the Long Run the Demand

question 105

Multiple Choice

If the price of capital rises,in the long run the demand for labor

• A) definitely increases.
• B) definitely decreases.
• C) definitely is unaffected.
• D) could increase or decrease, depending on the change in the scale of production.
• E) changes only if the supply of labor changes.

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Definitions:

Accounts Payable

Debts or financial obligations to vendors or lenders for products and services that have been acquired but remain unpaid.

Office Equipment

Office Equipment refers to the assets purchased for use in a business office, which may include computers, printers, furniture, and more, aiding in operational efficiencies.

Asset Accounts

Accounts that detail the resources owned by a business which have economic value and can be converted into cash.

Accounts Receivable

Outstanding amounts that customers owe to a business for delivered goods or services yet to be paid for.