The elasticity of demand for employees is -0.50. It is also estimated that the existing minimum wage (price floor) has increased the raise the wage by 25% above equilibrium wage. How much would the employment change if the price floor was eliminated?
A) Employment would decrease by 12.5%.
B) Employment would increase by 12.5%.
C) Employment would decrease by 25%.
D) Employment would increase by 25%.
B
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According to this Application, lower oil prices should ________ aggregate ________
A) increase; demand B) not change; demand C) decrease; demand D) decrease; supply
What four conditions define a perfectly competitive market?
What will be an ideal response?
An economic theory is also known as an economic
A) model. B) prediction. C) conclusion. D) assumption.
Which of the following events did not contribute to the high rate of bank failures in the 1980s and 1990s?
a. The collapse of the communist world, principally Russia; because of the collapse,they could not pay off their loans to U.S. banks b. Falling farm prices in the U.S. c. Bad loans to Mexico d. An unexpected slide in oil prices e. Falling agricultural land values