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Suppose the price of the product that labor is producing increases and simultaneously the price of capital, which is substitutable for labor, decreases. Assuming that the substitution effect is greater than the output effect, the demand for labor: Group of answer choices will increase. may either increase or decrease. will not change. will decrease.
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Answers: 2
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Suppose the price of the product that labor is producing increases and simultaneously the price of c...
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