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How is elasticity used to help allocate resourc... - SS2 Economics Concept of Elasticity And Its Application Question

How is elasticity used to help allocate resources in an economy?

A

If the elasticity of demand for a certain type of labor is high, firms may be more willing to hire workers with that skill set.

B

Elasticity has no effect on resource allocation in an economy.

C

If the elasticity of demand for a certain type of labour is low, firms may be less willing to hire workers with that skill set

D

If the elasticity of demand for a certain type of labour is high, firms may be less willing to hire workers with that skill set.

correct option: a
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