The demand for labor is more inelastic in the short run.This makes the short-run demand curve steeper compared to the long-run demand curve.

Question

Quizplus · Accepted Answer

In the short run, firms may have limited capacity to adjust their labor inputs due to fixed factors of production such as capital equipment and plant size. Therefore, they may be less responsive to changes in wages and the demand for labor may be more inelastic. This results in a steeper short-run demand curve compared to a more elastic long-run demand curve where firms have more flexibility to adjust their inputs and production processes.

The Demand for Labor Is More Inelastic in the Short