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In the Canadian labour market, demand for labour can be impacted by elasticity of the product in which  labour is an input. Suppose that the labour cost to total cost ratio in industry A (cannabis sector) is 14 percent, while in industry B (fertilizer sector)  it is 68 percent. Other things equal, labour demand will be Multiple Choice   more elastic in industry B than in A.   constant in both industries A and B.   relatively elastic in both industries A and B.   relatively inelastic in both industries A and B.   more elastic in industry A than in B.

In the Canadian labour market, demand for labour can be impacted by elasticity of the product in which  labour is an input. Suppose that the labour cost to total cost ratio in industry A (cannabis sector) is 14 percent, while in industry B (fertilizer sector)  it is 68 percent. Other things equal, labour demand will be Multiple Choice   more elastic in industry B than in A.   constant in both industries A and B.   relatively elastic in both industries A and B.   relatively inelastic in both industries A and B.   more elastic in industry A than in B.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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In the Canadian labour market, demand for labour can be impacted by elasticity of the product in which  labour is an input. Suppose that the labour cost to total cost ratio in industry A (cannabis sector) is 14 percent, while in industry B (fertilizer sector)  it is 68 percent. Other things equal, labour demand will be

Multiple Choice
  •  
    more elastic in industry B than in A.
  •  
    constant in both industries A and B.
  •  
    relatively elastic in both industries A and B.
  •  
    relatively inelastic in both industries A and B.
  •  
    more elastic in industry A than in B.
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