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

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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?

The wage rate increases 15 percent and the quantity demanded of labor falls by 25 percent. The absolute value of the elastici

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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

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Answer 2

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

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