labour demand

Question 1

define labour demand

Answer 1

Shows how many workers an employer is willing and able to hire at a given wage rate in a given time period .

Question 2

higher wages causes
lower wages causes

Answer 2

contraction
extension

Question 3

Elastic if (Total cost)

Answer 3

High proportion of labour cost compared to the total cost

Question 4

Elastic if (SUB)

Answer 4

• Ease and cost of factor substation (sub to capital easily than more elastic)

Question 5

inelastic if

Answer 5

• If the demand for goods is inelastic then labour demand is also inelastic as they can pass on the higher costs to consumers

Question 6

increase in demand

Answer 6

shift to the right

Question 7

government subsidy increases

Answer 7

shifts to right