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State Whether the Following Statements Are True Or False: Demand Elasticity Concept is Useful for Labour Unions. - Economics

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Question

State Whether the following statements are TRUE or FALSE: 

Demand elasticity concept is useful for labour unions. 

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Solution

True, demand elasticity concept is useful for labour unions.
Explanation:
The concept of elasticity of demand concept is useful for labour unions as they use it at the time of collective bargaining when determining the wage rates.

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