0
When the demand for labor is more elastic, employers are more responsive to changes in wages. A small increase in wage rates may lead to a significant decrease in the quantity of labor demanded, as firms can substitute labor with capital or reduce their workforce. Conversely, if wages decrease, firms may significantly increase their demand for labor. This heightened sensitivity can lead to greater fluctuations in employment levels in response to wage changes.
What else can I help you with?
Is a firm's demand for labor curve is more elastic in the short run than in the long run?
No. It's more elastic in the long run than the short run.
The demand for a product is likely to be more elastic when?
A product is likely to be more elastic the more dispensable or unnecessary it is to the consumer. For instance, if the price increases and the product is elastic, the consumer will not demand as much because they can do without it.
What happens to revenue when price falls and demand is elastic?
When the price falls and demand is elastic, total revenue increases. This occurs because the percentage increase in quantity demanded is greater than the percentage decrease in price, leading to higher overall sales revenue. In elastic demand scenarios, consumers are more responsive to price changes, so a lower price attracts significantly more buyers.
Along a linear demand curve as the price rises demand becomes more?
elastic
Is monopoly demand always elastic?
No, monopoly demand is not always elastic. In a monopoly, the demand curve is typically downward-sloping, meaning that the monopolist can influence the price of its product. The elasticity of demand depends on factors such as the availability of substitutes and the necessity of the product; if substitutes are few and the product is a necessity, demand may be inelastic. Conversely, if there are many substitutes, demand can be more elastic.
Is a firm's demand for labor curve is more elastic in the short run than in the long run?
No. It's more elastic in the long run than the short run.
When a product is in demand what happens to the demand curve?
the market demand for the product. undefined. more inelastic than the market demand for the product. more elastic than the market demand for the product
When demand is elastic?
The demand is elastic when the price is low. So people will buy more good so that it's demand will become more elastic. Moreover ,the demand is elastic when there are some new inventions.
What are some of the factors that affect the elasticity of demand for labor?
The elasticity of demand for labor is influenced by several factors, including the availability of substitute labor, the degree of labor's contribution to production, and the time frame considered. Industries that can easily substitute capital for labor tend to have more elastic demand. Additionally, if labor accounts for a significant portion of total production costs, demand may be more sensitive to wage changes. Lastly, in the short term, demand may be inelastic due to contractual obligations, but it can become more elastic over the long term as firms adjust their workforce.
The demand for a product is likely to be more elastic when?
A product is likely to be more elastic the more dispensable or unnecessary it is to the consumer. For instance, if the price increases and the product is elastic, the consumer will not demand as much because they can do without it.
What happens to revenue when price falls and demand is elastic?
When the price falls and demand is elastic, total revenue increases. This occurs because the percentage increase in quantity demanded is greater than the percentage decrease in price, leading to higher overall sales revenue. In elastic demand scenarios, consumers are more responsive to price changes, so a lower price attracts significantly more buyers.
Along a linear demand curve as the price rises demand becomes more?
elastic
Is monopoly demand always elastic?
No, monopoly demand is not always elastic. In a monopoly, the demand curve is typically downward-sloping, meaning that the monopolist can influence the price of its product. The elasticity of demand depends on factors such as the availability of substitutes and the necessity of the product; if substitutes are few and the product is a necessity, demand may be inelastic. Conversely, if there are many substitutes, demand can be more elastic.
What is the Four determinants of price elasticity of demand?
perfectly elastic demand the quantity change by infinitely large amount proportion due to the small change in price, is called perfectly elastic demand. perfectly inelastic demand the quantity demand doesn't change at all due to the change in price is called perfectly inelastic demand. relatively elastic demand the quantity demand changes by a little more percentage than the change in price is called relatively elastic demand. relatively inelastic demand the percentage change in quantity demand is less than the percentage change change in its price is called relatively inelastic demand unitary elastic demand the percentage change in quantity demand is equal to the percentage change in price is called unitary elastic demand
What product is more likely to have the MOST elastic demand curve?
Household electricity
Demand for ipod is elastic or inelastic?
Ipods are elastic. When the price drops people buy more, when it rises people buy less.
Does the existence of a bandwagon effect makes demand more price elastic at each price?
Yes, it certsinly does. The demand curve will be more elastic if there is a bandwagon effect than if the demand is based only on the functional attributes of the commodity. "BANDWAGON, SNOB, AND VEBLEN EFFECTS IN THE THEORY OF CONSUMERS' DEMAND" (Leibenstein, 1950)
