8. Labor demand will tend to be relatively wage elastic if... a) there are no good substitute inputs available and the wage bill is a large proportion of total production costs. b) there are good substitute inputs available and the wage bill is a large proportion of total production costs. c) there are no good substitute inputs available and the production process is highly mechanical. d) there are good substitute inputs available and the wage bill is a small proportion of total production costs. e) there are no good substitute inputs available and the production process is highly mechanical. Wage. The Market for Nurses. P₁ S D 9. Referring to the graph above, an increase in the demand for nurses will... a) shift the labor supply curve for nurses to the right. b) shift the labor supply curve for nurses to the left. c) increase wages and increase employment. d) increase wages and decrease employment. decrease wages and decrease employment.