One, perhaps surprising, impact of the recent cost-of-living crisis is that skilled tech workers are reporting...

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One, perhaps surprising, impact of the recent cost-of-living crisis is that skilled tech workers are reporting finding it easier to get a job. Question: With rental rates for capital rising rapidly due to interest rate rises, why would demand for skilled tech workers increase from cost-minimising firms so much more than demand for regular workers? (Hint Consider two types of firm: one that employs tech workers and capital; and one that employs regular workers and capital. What is the relationship between inputs?) One, perhaps surprising, impact of the recent cost-of-living crisis is that skilled tech workers are reporting finding it easier to get a job. Question: With rental rates for capital rising rapidly due to interest rate rises, why would demand for skilled tech workers increase from cost-minimising firms so much more than demand for regular workers? (Hint Consider two types of firm: one that employs tech workers and capital; and one that employs regular workers and capital. What is the relationship between inputs?)

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Answer 1 The demand for skilled tech workers is increasing due to costminimising firms looking to reduce their costs in order to remain competitive With rental rates for capital rising firms are seeki... View the full answer