Question

If productivity increases significantly and demand is not very elastic, what is likely to happen

Answer 1

If productivity increases significantly and demand is not very elastic, then the fewer worker will be required.

Further Explanation:

Elastic demand: The demand is termed as elastic when the price of services and goods are sensitive to the quantity demanded.

When productivity increases, it results in an increase in the production of goods. The increased production also increases the supply of goods in the market. Since the demand is less elastic, the quantity demanded will not change significantly. The less demand will force the producers to reduce the supply of the goods. The reduction in supply will result in decreased production. If the level of production is less, then fewer workers will be needed. The supply of the goods affects production levels which in turn affects the requirements for workers. The higher the production levels, the higher the worker requirement or vice versa.

Therefore, if productivity increases significantly and demand is less elastic, then the fewer worker will be required.

Learn more:

1. Demand and type of goods

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2. Demand and supply of goods

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3. Elasticity of demand

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Answer details:

Grade: Middle School

Subject: Economics

Chapter: Elasticity of demand

Keywords: If productivity increases significantly and demand is not very elastic, what is likely to happen, the elasticity of demand, elastic demand .

Answer 2

If productivity increases significantly and demand is not very elastic, the one that is most likely to happen is : Fewer workers will be needed.

When demand is not increased, the company doesn't have the need to keep up with the consumer demand, therefore they don't need much workers

hope this helps