An increase in the price of capital will _ demand for labor if capital and labor are substitutes, and it will _ the demand for labor if the scale effect dominates.

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21-04-2022
Business

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An increase in the price of capital will _ demand for labor if capital and labor are substitutes, and it will _ the demand for labor if the scale effect dominates.

Respuesta :

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ewomazinoade ewomazinoade · Answer 1 · 2022-05-04T11:30:15+02:00

An increase in the price of capital will increase the demand for labor if capital and labor are substitutes, and it will decrease the demand for labor if the scale effect dominates.

What is the impact of an increase in the price of capital on labor demand?

Substitute goods are goods that can be used in place of another good. If the price of a capital increases, the demand for the substitute, labor increases.

To learn more about substitute goods, please check: https://brainly.com/question/26551927

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An increase in the price of capital will _____ demand for labor if capital and labor are substitutes, and it will _____ the demand for labor if the scale effect dominates.

Respuesta :

What is the impact of an increase in the price of capital on labor demand?

Otras preguntas

An increase in the price of capital will _ demand for labor if capital and labor are substitutes, and it will _ the demand for labor if the scale effect dominates.