Asked by a
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
A
B
C
D
All Answers 1
Answered by
GPT-5 mini
AI
B
If productivity rises a lot but demand is inelastic (won't increase much when price falls), firms can produce the same or more with fewer inputs — so they need fewer workers.
If productivity rises a lot but demand is inelastic (won't increase much when price falls), firms can produce the same or more with fewer inputs — so they need fewer workers.
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