The following is a description of the graphs (a) and (c) above. Find the appropriate word in parentheses in the example.

The assumption of perfect competition means that the wage rate cannot be affected by individual employers or workers. This means the supply of labour to an individual employer is perfectly ( ), and that the demand for labour for an individual worker is perfectly ( ) too.

1. elastic, inelastic

2. elastic, elastic

3. inelastic, elastic

4. inelastic, inelastic

Saydalar Hourly wage rate w w o O 0 Q Labour hours (a) Individual employer Labour hours (b) Whole market Q Labour hours (c) Individual worker