The derived demand for labor is more inelastic if a given type of labor is essential in the production of the final products.

Question

Quizplus · Accepted Answer

When a type of labor is essential for the production of final products, the demand for that particular type of labor is more inelastic. This means that even if there is a change in the price of labor, the demand for that labor will not change significantly. This is because the production of the final product is heavily dependent on the type of labor and cannot be substituted easily. Therefore, the derived demand for labor is more inelastic when a given type of labor is essential in the production process.

The Derived Demand for Labor Is More Inelastic If a Given