Multiple Choice
The elasticity of demand for labor is 2.16. It follows that if the
A) wage rate changes by 10 percent, the demand for labor changes by 2.16 percent.
B) demand for labor changes by 2.16 percent, the wage rate changes by 1.0 percent.
C) wage rate changes by 10 percent, the quantity demanded of labor changes by 21.6 percent.
D) wage rate changes by 2.16 percent, the quantity demanded of labor changes by 2.16 percent.
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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