CFA Practice Question

There are 923 practice questions for this topic.

CFA Practice Question

If the demand for a good is relatively elastic, then the elasticity of demand for the labor used to produce the good will tend to be ______.

A. one
B. relatively elastic
C. relatively inelastic
Correct Answer: B

The elasticity of demand for labor depends on the labor intensity of the production process, the elasticity of demand for the product, and the substitutability of capital for labor.

User Contributed Comments 0

You need to log in first to add your comment.