Question 22 2 pts Suppose that capital and labor are complem

Question 22 2 pts Suppose that capital and labor are complements in production. Assume there is a decrease in the quantity of capital. How will this affect the demand curve for labor? O The labor demand will shift to the right The labor demand will shift to the left O Firms will try to avoid using any labor (if possible) in their production process O Firms will try to use as much labor as possible in their production process su.instructure.com/courses/1891366/quizzes/3418943/take

Solution

for complementary factor input, a decrease in demand for capital, would necessarily decrease the demand for labor.

or example if inputs are required to be used in the ratio of 6:3 (for labor an capital respectively), if capital falls to 2, then labor demand must fall to 4.