If Sara's Elasticity of Labor Supply Is 1

question 65

Multiple Choice

If Sara's elasticity of labor supply is 1.5 and she increases her supply of labor by 5 percent, then the wage rate must have

• A) Increased by 3.3 percent.
• B) Increased by 3.0 percent.
• C) Increased by 7.5 percent.
• D) Decreased by 7.5 percent.

---

Definitions:

Positional Negotiation

A bargaining process where each party takes a specific stance or position and negotiates from that baseline, often leading to a win-lose outcome.

Brainstorming Solutions

A creative problem-solving technique that involves generating a wide range of ideas in a group setting to find a solution to a specific problem.

Conflict Intelligence

The ability to understand and navigate conflicts in a manner that minimizes harm and promotes positive outcomes for all involved parties.

Read Conflict

The ability to identify and understand the underlying issues and emotions in a disagreement or problem.