are23 - which elastic supply of substitutes keeps the price...

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Some factors that determine the elasticity of demand for labor are factors that will flatten the curve and make the demand more elastic, the opposite of what unions would prefer. Some things that can have this effect are if elasticity of demand for the good is greater so that when the price rises consumers buy less. Also, if elasticity of substitution increases, the workers can be replaced easier by mechanization. The elasticity of supply of substitutes is higher in
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Unformatted text preview: which elastic supply of substitutes keeps the price of the substitute from soaring super high. The labor in production costs, that is how much of the total costs are related to labor, also plays a role and time/labor demand schedules tend to increase in elasticity because time allows employers the luxury of looking for a way to avoid high priced workers through alternative methods....
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