The output effect occurs:?

Question

a)only when wage elasticity of demand is greater than 1

b)because a change in the price of a resource will alter costs and therefore the equilibrum output

c)only when inputs being employed are substitutes

d)only when the inputs being employed are complementary

Answer 1

a)only when wage elasticity of demand is greater than 1

Answer 2

b) because a change in the price of a resource will alter costs and therefore the equilibrium output.