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

Question

Quizplus · Accepted Answer

If it becomes harder to substitute capital for labour, the demand for labour becomes less elastic because firms have fewer alternatives to labour, making them less responsive to changes in wages.

Consider a Firm's Demand Curve for Labour