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Labor and capital to make shoes

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Reference no: EM131602736

Alice runs a shoe making factory that utilizes both labor and capital to make shoes. Which of the following would shift the factory's demand for capital and why?

a. Many consumers decide to walk barefoot all the time.

b. New shoe making machines are twice as efficient as older machines.

c. The wages that the factory has to pay its workers rise due to an economy-wide labor shortage.

Reference no: EM131602736

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