Labor demand is less elastic when: _____________

a. the demand for output is more elastic.
b. a large amount of labor is essential to the production process.
c. there are many substitutes for labor in the production process.
d. the inputs that could be substituted for labor are relatively inexpensive.

Respuesta :

Answer:

The correct answer is B. Labor demand is less elastic when a large amount of labor is essential to the production process.

Explanation:

Inelastic demand is one that is not very sensitive to sudden changes in its quantity, even in the face of important changes in the context in which they operate, such as a change in the price if it is a product for sale, or in the working conditions or wages if you talk about labor demand.

Thus, in the case of a job in which high amounts of labor are needed, the labor demand will remain stable despite these changes, as workers will perceive that it is a position of easy access and hiring.