Alice runs a shoemaking factory that utilizes both labor and capital to make shoes. Which of the following would shift the factory’s demand for capital? You can select one or more answers from the choices shown.
a. Many consumers decide to walk barefoot all the time.
b. New shoemaking machines are twice as efficient as older machines.
c. The wages that the factory has to pay its workers rise due to an economy-wide labor shortage.
4. FreshLeaf is a commercial salad maker that produces “salad in a bag” that is sold at many local supermarkets. Its customers like lettuce but don’t care so much what type of lettuce is included in each bag of salad, so you would expect FreshLeaf’s demand for iceberg lettuce to be:
c. Unit elastic.
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