Other things being equal,if it becomes more difficult to substitute capital for labour in the production of cell phones,the demand curve for labour in that industry
A)will shift parallel to the left.
B)will shift parallel to the right.
C)will remain unchanged.
D)will become more elastic.
E)will become more inelastic.

Question

Quizplus · Accepted Answer

If it becomes more difficult to substitute capital for labor, the demand for labor becomes more inelastic because firms have fewer alternatives to using labor, making them less responsive to changes in wage rates.

Other Things Being Equal,if It Becomes More Difficult to Substitute