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The Price of Capital Falls

Question 32

Multiple Choice

The price of capital falls. Assuming that the firm does not increase the quantity it produces, in the long run the firm's demand for labour curve


A) shifts rightward only if the elasticity of demand for labour is elastic.
B) shifts leftward.
C) shifts rightward only if the elasticity of demand for labour is inelastic.
D) does not shift, but there is a movement along it.
E) does not shift, and there is no movement along it.

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