Two resource inputs, capital and labor, are complementary and used in fixed proportions. An increase in the price of capital will:
A. Increase the demand for labor
B. Decrease the demand for labor
C. Decrease the quantity demanded for labor
D. Have no effect because the relationship is fixed
B. Decrease the demand for labor
Economics
You might also like to view...
A________is the change in the amount offered for sale in response to the change in price.
Fill in the blank(s) with the appropriate word(s).
Economics
How does the elasticity of demand influence the incidence of a tax, the tax revenue, and the deadweight loss?
What will be an ideal response?
Economics