Given a 3 Percent Decrease in Wages,firm a Hires More

Multiple Choice

Given a 3 percent decrease in wages,firm A hires more labor than firm B.It follows that,ceteris paribus,

A) the elasticity of demand for the product that firm A produces is lower than the elasticity of demand for the product that firm B produces.
B) firm A has a lower labor cost-total cost ratio than firm B.
C) firm A has more substitutes for labor than firm B.
D) firm A has higher per-unit costs than firm B.
E) none of the above