Assume coffee machine and labor are the only two inputs for a coffee shop. The labor demand elasticity will be larger if A. Coffee machine is the substitute for labor in the shop. in the short run. B. Coffee has a relative inelastic demand C. Labor cost is around 80% in the total cost of the shop. D. The supply of tea machine is quite elastic.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Assume coffee machine and labor are the only two inputs for a coffee shop. The labor demand elasticity will be
larger if
A. Coffee machine is the substitute for labor in the shop.
in the short run.
B. Coffee has a relative inelastic demand
C. Labor cost is around 80% in the total cost of the shop.
D. The supply of tea machine is quite elastic.
Transcribed Image Text:Assume coffee machine and labor are the only two inputs for a coffee shop. The labor demand elasticity will be larger if A. Coffee machine is the substitute for labor in the shop. in the short run. B. Coffee has a relative inelastic demand C. Labor cost is around 80% in the total cost of the shop. D. The supply of tea machine is quite elastic.
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