2983EconomicsMedium
Demand for labour is more likely to be wage inelastic if?
ACapital is a good substitute for labour
BDemand for the final product is price elastic
CWages are a small proportion of total costs
DIt is easy to replace labour
Correct answer
C. Wages are a small proportion of total costs
Explanation
The correct answer is Wages are a small proportion of total costs.