If Anh's Elasticity of Labor Supply Is 1

question 101

Multiple Choice

If Anh'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.

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Definitions:

Accumulated Depreciation

The total amount of an asset's cost that has been allocated as depreciation expense over its useful life, reducing its book value on the balance sheet.

Asset

Tangible or intangible items of value owned or controlled by a person or company, capable of producing future economic benefits.

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of an asset evenly across its useful life.