Which of the following statements is true?
A)The lower the elasticity of demand for cars, the higher the elasticity of demand for the workers that produce cars.
B)The higher the elasticity of demand for cars, the lower the elasticity of demand for the workers that produce cars.
C)The lower the elasticity of demand for cars, the lower the elasticity of demand for the workers that produce cars.
D)The fewer the substitute factors for union labor, the higher the elasticity of demand for union labor.
E)c and d

Question

Quizplus · Accepted Answer

The elasticity of demand for workers is directly related to the elasticity of demand for the product they produce. If the demand for cars is inelastic, the demand for workers is also likely to be inelastic.

Which of the Following Statements Is True