if productivity increases significantly and demand is not very elastic, what is likely to happen? a. the…
if productivity increases significantly and demand is not very elastic, what is likely to happen? a. the number of consumers will increase. b. fewer workers will be needed. c. division of labor will decrease. d. demand will increase. please select the best answer from the choices provided
Answer
Brief Explanations:
When productivity increases and demand is inelastic, firms can produce more with less input. Since they don't need to increase output much to meet demand (due to inelasticity), fewer workers will be required. Option A is incorrect as inelastic demand doesn't directly lead to more consumers. Option C is wrong because higher productivity often leads to more division of labor, not less. Option D is incorrect as inelastic demand means it doesn't change much with productivity changes.
Answer:
B. Fewer workers will be needed.