1) Using the determinants of elasticity of labor demand, discuss how each of those determinants applies...

1) Using the determinants of elasticity of labor demand, discuss how each of those determinants applies in the case of fitness instructors. Conclude with whether you believe, as a result of your discussion, demand for fitness instructors is likely elastic or inelastic.

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Expert Solution

Elasticity of labour demand is more elastic when a firm possible to substitute easily and cheaply between labour and capital inputs .which more details says that it measures the responsiveness of demand for labour when there is a change in the making market wage rate. The elasticity of demand for labour depends on some factors like labour cost and ease and cost of factotr substitution and price elasticity of demand for demand of final product and finally time period. So labour demand is elastic when the employment is sensitive to changing wages. And labour demand. Is in elastic when the large rise in wages causes only a small fall in employment.

Rahul Sunny answered 1 year ago

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