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The year is 2035 In many occupations, robots are replacing humans

Economics Dec 17, 2020

The year is 2035 In many occupations, robots are replacing humans. As it turns out, robots make very good house cleaners, but very poor ski instructors.

Assuming the other determinants of demand for the two services are roughly similar, you would expect the demand for human ski instructors to be (more elastic than, less elastic than, equal to elastic than, derived from) the demand for human house cleaners.

One factor that affects the elasticity of demand for labor is the elasticity of demand for the product itself.

The lower the price elasticity of demand for a product, the (higher or lower) the elasticity of demand for labor.

Expert Solution

Assuming the other determinants of demand for the two services are roughly similar, you would expect the demand for human ski instructors to be less elastic than the demand for human house cleaners. This is because skiing is a leisure activity so the demand is usually less elastic than the demand of a necessity like house cleaning. The lower the the price elasticity of a product, the lower the elasticity of demand for labor. The price elasticity of demand determines whether charge higher prices to consumers because of higher labor costs. If price elasticity of demand is inelastic they can pass the labor costs on to consumers so the elasticity of labor would be inelastic too.

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