Economics (AS & A Level) · Feb / March 2021 · Paper 32 · Question 17
9708Labour market forces and government intervention
What would be most likely to cause the demand for labour in an industry to be inelastic?
- ALabour costs are a small percentage of total cost.
- BThe demand for the final product has a price elasticity of demand that is greater than one.
- CThe workforce belongs to a strong trade union.
- DThere is a large pool of readily available labour.
As printed in the paper
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Correct answer: A. Labour costs are a small percentage of total cost.
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