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    Suppose the Elasticity of Labor Demand Is 1
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Suppose the Elasticity of Labor Demand Is 1

Question 37

Question 37

Multiple Choice

Suppose the elasticity of labor demand is 1.4. 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.

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