The price elasticity of demand for labor will depend upon all but the:

a. availability of substitutes for inputs.

b. price elasticity of demand for the final product.

c. time period being considered.

d. price elasticity of supply for the final product.

The price elasticity of demand for labor will depend upon all but the: (d) price elasticity of supply for the final product.

a. availability of substitutes for inputs. YES. If the firm is able to switch between other factors to produce the product, a rise in the price of labor will result in a relatively large drop in the quantity of labor demanded.

b. price elasticity of demand for the final product. YES. When the price of labor goes up, the price of the product will also increase. If the demand for the final product is highly elastic, the rise in the price will cause the quantity demanded of the good to decrease by a relatively large amount. This will also cause the demand for labor to decline, causing the elasticity of labor to also be elastic.

c. time period being considered. YES. Going back to option (a), over time, the firm will be able to switch to other inputs, which will increase the number of inputs in the long run. So over time, the elasticity of demand for labor is more elastic.

d. price elasticity of supply for the final product. NO. The elasticity of demand of labor is already factored into the price elasticity of supply.