labour elastics

Question 1

insignificant rise in total cost

Answer 1

If total costs is insignificant therefore the demand for labour is inelastic

Question 2

what happens if the supply for labour is elastic and there’s an increase in price

Answer 2

is going to result in a bigger impact
Therefore the elastic supply will have a larger impact on the derived demand on steel workerss reducing strucatl unemployment more therefore have a more significant effect