Question
Which of the following best describes the intuition behind an increase in prices leading to an uneven increase in demand for factors? Group of answer
Which of the following best describes the intuition behind an increase in prices leading to an uneven increase in demand for factors?
Group of answer choices
1.Sectors are uneven in their use of factors, therefore the expansion of a labour-intensive sector unevenly increases demand for capital.
2.Sectors are equivalent in their use of factors, therefore the expansion of a labour-intensive sector unevenly increases demand for capital.
3.Sectors are uneven in their use of factors, therefore the expansion of a labour-intensive sector unevenly increases demand for labor.
4.Sectors are equivalent in their use of factors, therefore the expansion of a labour-intensive sector unevenly increases demand for labor.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started