Write problem set Speech or Presentation Example | Topics and Well Written Essays - 500 words

spell problem set - Speech or Presentation Examplethis is because, the substitution effect lurchs. The quantity of capital is less with more wage rateIn the long run, a decrease in the equipment casualty of capital will lead to an increase in labor units. This is because the proportions have a substitution effect. The ingrained effect will be less capital and more labor employment.a) According to the substitution effect, I would expect a caller-out to have a high own wage snap of lead if the other factors of production such as capital can easily be used as substitutes for labor. This would make it easy for labor to be reduced or increased depending on its substitutes quantities.b) If the product being produced in an industry has high price elasticity, because it heart that the labor elasticity of adopt will also be high. If an industry is producing coffee and the elasticity of demand for coffee keeps changing, then the own wage labor rate will also change relatively to the elasticity of demand of the product.c) When all the other factors of production have a high elasticity of demand, then it also means that the labor elasticity of demand will be high thus elastic. If a companys capital demand keeps changing for example, then it means even labor demand will change as the two are co-related. A company will only be able to assume what it can pay for thus the elasticity.d) If the total cost of production of a company is highly contributed by labor, then the labor elasticity of demand will tend to be highly elastic. This is a surmount effect that means that, the more labor in an industry contributes highly to more total be in production, the more the company is likely to demand labor. If product cost is low for example and the company requires to spend less on production, they will cut on labor because it has the bigger percentage indeed the