Contemporary Labor Economics 9th Edition by Campbell Mcconnell, Stanley Brue, David Macpherson, Robert Powell, David Colander

Exercise 24

Is labor demand (a) elastic, (b) unit elastic, or (c) inelastic over the $4 to $12 wage rate range of D L in Figure 5.11(b) Explain by referring to the total wage bill rules (Figure 5.7) and the midpoint formula for elasticity [Equation (5.4)].