A computer manufacturer's elasticity of demand for labor is not likely to be affected by the
A) supply of computers.
B) price elasticity of demand for computers.
C) ratio of labor cost to other resource costs in the firm.
D) ease of substituting capital for labor in producing computers.

Question

Quizplus · Accepted Answer

The elasticity of demand for labor is not directly affected by the supply of computers, as it is more related to factors like demand for the product, cost ratios, and substitution possibilities.

A Computer Manufacturer's Elasticity of Demand for Labor Is Not