Assume that the coefficient of elasticity of product demand is 0.1 in the food and beverages (F&B) industry and is 2.3 in the oil and gas (O&G) industry. Other things equal, labor demand will be
a. relatively inelastic in both F&B, and O&G industries.
b. relatively elastic in both F&B and O&G industries.
c. more elastic in O&G industry than in F&B.
d. more elastic in F&B industry than in O&G.
Ans: c. more elastic in O&G industry than in F&B.
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