An online logistics firm employs delivery couriers. According to the marginal productivity theory of labour and the principles of derived demand, which of the following changes is most likely to make the firm's demand for couriers more wage elastic?
A transition from the short run to the long run, during which the firm can invest in autonomous delivery drones to replace couriers.
A decrease in the price elasticity of demand for the firm's delivery services, due to a successful brand loyalty campaign.
An increase in the price of fuel and logistics warehouses, which causes courier wages to represent a significantly smaller proportion of the firm's total costs.
A decrease in the price elasticity of supply of alternative delivery technologies, making automated sorting machinery rapidly more expensive to acquire as demand for it rises.
64 exam-style questions on AQA A Level Economics 1.6 The labour market (A-level only), covering 1.6.1 The demand for labour, marginal productivity theory, 1.6.2 Influences upon the supply of labour to different markets, 1.6.3 The determination of relative wage rates and levels of employment in perfectly competitive labour markets, 1.6.4 The determination of relative wage rates and levels of employment in imperfectly competitive labour markets, 1.6.5 The Influence of trade unions in determining wages and levels of employment, 1.6.6 The National Minimum Wage, and 1.6.7 Discrimination in the labour market. Each one has a worked solution and a mark scheme showing where the marks go.