Consider a firm's demand curve for labour.If a technological change makes it easier to substitute capital for labour,the demand curve for labour
A)becomes more inelastic.
B)becomes more elastic.
C)shifts parallel to the right.
D)shifts parallel to the left.
E)is not affected.

Question

Quizplus · Accepted Answer

When it becomes easier to substitute capital for labour, firms will reduce their demand for labour, making the demand curve more elastic as they have more options to choose from.

Consider a Firm's Demand Curve for Labour