The price elasticity of demand for labor will depend upon all but the
A) price elasticity of demand for the final product.
B) price elasticity of supply for the final product.
C) time period being considered.
D) availability of substitutes for inputs.
Answer: B
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When the real wage is below the equilibrium price in the labor market ________
A) we have an excess supply of labor and the real wage should fall B) we have an excess demand of labor and the real wage should fall C) we have an excess demand of labor and the real wage should increase D) we have an excess supply of labor and the real wage should increase E) none of the above
The ability-to-pay principle is most closely tied to the concept of
a. horizontal equity in taxation. b. fiscal federalism. c. vertical equity in taxation. d. the benefits principle of tax equity.
A tax levied on the sellers of blueberries
a. increases sellers' costs, reduces profits, and shifts the supply curve up. b. increases sellers' costs, reduces profits, and shifts the supply curve down. c. decreases sellers' costs, increases profits, and shifts the supply curve up. d. decreases sellers' costs, increases profits, and shifts the supply curve down.
If Lady Gaga insists that tickets to her concert be sold for $100 each rather than the $500 each that could be charged as reflected by demand for those tickets, then the result will be
A) to create an excess supply of tickets. B) to eliminate $150 worth of economic rent per ticket. C) that part of the economic rent will be dissipated by scalpers, radio station owners, etc. D) that the demand for tickets will decrease.