Indicate whether the following events will increase, decrease, or have an uncertain effect on the quantity of
Question:
Indicate whether the following events will increase, decrease, or have an uncertain effect on the quantity of labor demanded by U.S.
automobile manufacturers.
Event A: Demand for U.S. cars falls.
Event B: Wages of auto workers go up.
Event C: Price of machinery goes up. (Machinery and auto workers are complements.)
Event D: Price of machinery goes up. (Machinery and auto workers are substitutes.)
Event E: Total productivity goes up in U.S. auto making. Demand for U.S. cars is elastic.
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