Yes, labor is definitely the more elastic of the two.
I am just a bit tired of explaining to people why things aren't as cheap as they perceive they should be. One thing I tell them, is to quit paying attention to the "doom & gloom" of the national news, things are never as bad as they make it out to be and that is especially the case in Oklahoma and Texas. Then I ask then if they have halved their prices because of the recession...they usually stammer trying to come up with something to say at that point.
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