Four factors that influence the elasticity of market labor demand are: (1) the elasticity of demand for a firm's good, (2) the relative importance of the factor in the production process, (3) the possibility of, and cost of, substitution in production, and (4) the degree to which the marginal productivity falls with an increase in the factor. How does each affect market labor demand?

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The Answer of Four factors that influence the elasticity of market labor demand are: (1) the elasticity of demand for a firm's good, (2) the relative importance of the factor in the production process, (3) the possibility of, and cost of, substitution in production, and (4) the degree to which the marginal productivity falls with an increase in the factor. How does each affect market labor demand?

Four Factors That Influence the Elasticity of Market Labor Demand