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Linda Taylor
on Oct 08, 2024

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If a 10 percent wage increase in a particular labor market results in a 5 percent decline in employment in that market,labor demand is:

A) unit-elastic.
B) elastic.
C) inelastic.
D) perfectly elastic.

Wage Increase

An upward adjustment in wages or salaries, often to match inflation, improve living standards, or reward performance.

Labor Demand

The total amount of workers that employers are willing and able to hire at given wages over a certain period.

Employment Decline

A situation where the number of employed individuals in the economy decreases, often measured over a specific period, which can indicate economic downturns or industrial shifts.

  • Recognize the factors that influence the elasticity of resource demand.
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NOURA ALQARZAOct 14, 2024
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