8. In industry C labor accounts for a large proportion of total production costs. Because so much is spent on labor demand for labor will be very elastic in C (a small change in the wage makes for a large change in production costs). Just the opposite is true in industry D where labor costs are a small fraction of total production costs. As a result, as shown here, the same increase in supply leads to a large increase in hiring and a small drop in wages in C, but leads to a large drop in wages in D with a small increase in hiring.