Suppose the price elasticity of demand for iPods is inelastic. What would you expect about the demand elasticity for workers producing iPods? Explain
What will be an ideal response?
Because the demand for workers producing iPods is derived from the demand for iPods, the demand elasticity for the workers is positively related to the price elasticity of demand for the final products. This means that the demand elasticity for workers producing iPods is also inelastic.
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The price of A falls by 2 percent, and the quantity demanded of A increases by 2 percent. Meanwhile, the quantity demanded of B increases by 2 percent too. We would conclude that
A) demand for A is elastic, and A and B are substitutes. B) demand for A is elastic, and A and B are complements. C) demand for A is unit-elastic, and A and B are complements. D) demand for A is inelastic, and A and B are unrelated.
The hourly minimum wage rate in the U.S. is now ___________.
Fill in the blank(s) with the appropriate word(s).