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When the Price of Capital Decreases,if the Demand for Labor

question 26

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When the price of capital decreases,if the demand for labor then capital and labor are gross.


Definitions:

Price Elasticity

A measure of how much the demand or supply of a product changes in response to a change in its price.

Incidence

The allocation or impact of an economic activity or policy, especially in terms of who bears the cost or receives the benefits.

Excise Tax

A tax imposed on specific goods, services, or activities, often aimed at discouraging their use or raising revenue for government.

Price Elasticity

A measure of the sensitivity of demand or supply for a product or service to changes in its price.

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