The market demand curve for skilled labour is _________ because _______

Question 4 options:

a)

highly elastic; unskilled labour is not easily substituted for other skilled labour

b)

more elastic than the sum of individual firms' MRP curves; of factor substitution

c)

less elastic than the sum of individual firms' MRP curves; MPP falls faster for skilled workers than for unskilled workers

d)

less elastic than the sum of individual firms' MRP curves; prices of substitute factors can change

e)

Either (a) or (b), depending on the degree of competition in the product market