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If There Is a Decline in the Price a Certain

Question 39

Multiple Choice

If there is a decline in the price a certain type of capital equipment used in one industry, and the result is that employment declines in that industry, we can conclude that


A) this type of capital equipment is a substitute for labor.
B) this type of capital equipment is a complement to labor.
C) the demand for labor in this industry is upward sloping.
D) the supply of labor in this industry is downward sloping.

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