Solution-Change in quantity demanded by firms

Change in quantity demanded by firms

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Suppose firms in an industry regard certain types of moderately skilled labor and advanced automation machinery as substitute goods with a cross-price elasticity of demand of 0.35. If over several years ongoing technology improvements lower the price of the machinery by 75%, what will be the change in quantity demanded by firms of this moderately skilled labor?

Reference no: EM133078779

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Change in quantity demanded by firms

Reference no: EM133078779

Reference no: EM133078779

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