Use the figure below to answer the following questions.

Figure 19.3.1
-Refer to Figure 19.2.1.For any given quantity of labour employed,

Question

Use the figure below to answer the following questions.
  
Figure 19.3.1
-Refer to Figure 19.2.1.For any given quantity of labour employed,

Quizplus · Accepted Answer

From the figure, we can see that the demand curve for high-skilled labour is steeper than that of low-skilled labour indicating that the elasticity of demand for high-skilled labourers is less than the elasticity of demand for low-skilled labourers. This means that high-skilled labourers will receive a greater wage than low-skilled labourers. The vertical distance between the two demand curves represents the difference in wages between high-skilled and low-skilled labour and is due to the higher productivity and value of high-skilled labour.

Use the Figure Below to Answer the Following Questions