Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
Vicki9699 Vicki9699
wrote...
Go to Answer
Posts: 326
Rep: 16 0
5 years ago
Suppose firms in an industry hire unskilled labor and skilled labor. Unskilled labor is a substitute for capital and skilled labor is a complement with capital. A decrease in the real price of capital would
A) cause the demand for labor to increase, raising wages of both skilled and unskilled labor.
B) cause the demand for unskilled labor to increase and the demand for skilled labor to decrease. The wage of unskilled labor would rise relative to the wage of skilled labor.
C) cause the demand for unskilled labor to decrease and the demand for skilled labor to increase. The wage of unskilled labor would decrease relative to the wage of skilled labor.
D) cause the demand for both kinds of labor to decrease. Wages rates of both kinds of labor would decrease too.
Textbook 
Economics Today: The Micro View

Economics Today: The Micro View


Edition: 19th
Author:
Read 58 times
2 Replies
Replies
Answer verified by a subject expert
nsaknsak
wrote...
#1
Posts: 146
Rep: 67 0
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Vicki9699 Author
wrote...
#2
5 years ago
Thank you for being such a great website leader! Your answer's right.
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  981 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 225
  
 692
  
 290
Your Opinion
Which is the best fuel for late night cramming?
Votes: 145
Previous poll results: What's your favorite coffee beverage?