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The Price of Capital Falls

Question 75

Multiple Choice

The price of capital falls.Assuming that the firm does not increase the quantity it produces,in the long run the firm's demand for labor curve


A) does not shift, and there is no movement along it.
B) shifts leftward.
C) shifts rightward only if the elasticity of demand for labor is elastic.
D) does not shift, but there is a movement along it.
E) shifts rightward only if the elasticity of demand for labor is inelastic.

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