When labor supply is _______,asset growth that increases the demand for low-skill labor _________ and well-being __________ for the low-skill workers already in the market.

Question

Quizplus · Accepted Answer

When labor supply is inelastic, an increase in asset growth that raises the demand for low-skill labor leads to higher wages and significantly improves the well-being of low-skill workers already in the market, due to the limited ability of the labor supply to expand in response to increased demand.

When Labor Supply Is _______,Asset Growth That Increases the Demand