Factors that affect the elasticity of demand for labor include all of these except:

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Rebel

Business

9 November, 15:49

Factors that affect the elasticity of demand for labor include all of these except:

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Kaydence Michael · Answer 1

Since the problem doesn’t give the choices for these questions. I will be giving you the factors that affect the elasticity:

1. Labor costs as percent of total costs - when labor expenses have a high share in total costs then labor demand is more elastic.

2. Easiness and cost of factor substitution - when the firm can substitute rapidly and effortlessly between labor and capital inputs.

3. Price elasticity of demand for the final output produced - if the business is working an extremely competitive market where the final demand of the product is elastic and as a result the demand for labor is more elastic.