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Assume That the Coefficient of Elasticity of Product Demand Is

Question 187

Multiple Choice

Assume that the coefficient of elasticity of product demand is 0.5 in industry A and is 3.2 in industry B. Other things equal, labor demand will be


A) more elastic in industry A than in B.
B) relatively elastic in both industries A and B.
C) more elastic in industry B than in A.
D) relatively inelastic in both industries A and B.

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