Suppose the Supply of Capital Is Relatively Inelastic

question 31

Multiple Choice

Suppose the supply of capital is relatively inelastic.If capital and labor are gross complements,the labor demand elasticity will be ,but if capital and labor are gross substitutes,the labor demand elasticity will be .

• A) high,high
• B) low,low
• C) low,high
• D) high,low
• E) zero,zero

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Definitions:

Implementation

The process of putting a decision or plan into effect; executing or carrying out a plan, idea, or policy.

Stock Prices

represent the value of a company's shares as quoted on a stock exchange, reflecting investor perceptions of the company's future financial performance.

ESOPs

An Employee Stock Ownership Plan, a program that provides a company's workforce with an ownership interest in the company.

Motivational Value

The inherent capacity of a stimulus, activity, or goal to evoke a motivational response or encourage sustained engagement and effort.