The wage rates increases 15 percent and the quantity demanded of labor falls by 25 percent....

Question

Question

The wage rates increases 15 percent and the quantity demanded of labor falls by 25 percent. the absolute value of elasticity of demand for labor is?

business economics

Answer 1

Answer #1

elasticity of Demand for labour = %∆ Demand for labor / %∆ wage rate

Elasticity Demand for labor = 25/ 15 = 1.67

So the correct option is 1.67

Answer 2

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