The demand for labour is less elastic with respect to changes in wages, the smaller the wage cost is as a proportion of total costs.

Name: The demand for labour is less elastic with respect to changes in wages, the smaller the wage cost is as a proportion of total costs.
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When wage costs are a smaller proportion of total costs, changes in wages have a less significant impact on overall costs, making the demand for labor less sensitive or elastic to wage changes.

The Demand for Labour Is Less Elastic with Respect to Changes