Suppose the United Auto Workers' Union succeeded in obtaining a 10 percent increase in the wages of its workers and that the wage increase caused automobile prices to rise. Employment in the auto industry would be most likely to decline significantly if a.the demand for American-made automobiles was highly elastic. b.American consumers considered foreign automobiles a poor substitute for American automobiles. c.the demand for American automobiles was relatively constant and highly inelastic. d.the supply of foreign-produced automobiles was highly inelastic.
Suppose the United Auto Workers' Union succeeded in obtaining a 10 percent increase in the wages of its workers and that the wage increase caused automobile prices to rise. Employment in the auto industry would be most likely to decline significantly if a.the demand for American-made automobiles was highly elastic. b.American consumers considered foreign automobiles a poor substitute for American automobiles. c.the demand for American automobiles was relatively constant and highly inelastic. d.the supply of foreign-produced automobiles was highly inelastic.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter19: Elasticity
Section: Chapter Questions
Problem 2QP: For each of the following, identify where demand is elastic, inelastic, perfectly elastic, perfectly...
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Suppose the United Auto Workers' Union succeeded in obtaining a 10 percent increase in the wages of its workers and that the wage increase caused automobile prices to rise. Employment in the auto industry would be most likely to decline significantly if
a.
the demand for American-made automobiles was highly elastic.
b.
American consumers considered foreign automobiles a poor substitute for American automobiles.
c.
the demand for American automobiles was relatively constant and highly inelastic.
d.
the supply of foreign-produced automobiles was highly inelastic.
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