Asked by
Alexandra Fitzsimmons
on Dec 19, 2024
Verified
Suppose the elasticity of labor demand is 0.6. Then a decrease in the wage rate will
A) decrease total wage income.
B) increase total wage income.
C) have no impact on total wage income.
D) have an indeterminate impact on total wage income.
Elasticity
In economics, elasticity measures how much the quantity demanded or supplied changes in response to a change in price or other factors.
Wage Income
Earnings received by an individual from employment or labor.
- Gain insight into how differences in wages, the cost of moving, and the responsiveness of labor demand influence immigration movements.
Verified Answer
KY
Learning Objectives
- Gain insight into how differences in wages, the cost of moving, and the responsiveness of labor demand influence immigration movements.