Labour Markets

Question 1

What factors affected LED?

Answer 1

• substitutes (few = inelastic)
• percentage of total cost (wages small % = inelastic)
• time (short run = inelastic)
  ^^ inelastic = higher wages

Question 2

What factors affect LES?

Answer 2

• skills and qualifications (many needed = inelastic)
• unemployment (low unemployment = inelastic)
• time (SR - no time to train/apply = inelastic)