When there's a technological improvement and the demand for the output is perfectly inelastic:
Demand for labor and capital decreases
Inelastic is a phrase used in economics to describe an item or service's static quantity when its price varies. When a product's price increases or decreases, consumers' purchasing patterns remain relatively stable, which is referred to as being inelastic.
When demand is completely inelastic, prices or quantities are fixed and unaffected by the other variable. When the quantity sought changes proportionately to a change in price, this is known as unitary demand.
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