The Elasticity of Demand for Labor Is 2

question 25

Multiple Choice

The elasticity of demand for labor is 2.16. It follows that if the

• A)wage rate changes by 10 percent, the demand for labor changes by 2.16 percent.
• B)demand for labor changes by 2.16 percent, the wage rate changes by 1.0 percent.
• C)wage rate changes by 10 percent, the quantity demanded of labor changes by 21.6 percent.
• D)wage rate changes by 2.16 percent, the quantity demanded of labor changes by 2.16 percent.
• E)none of the above

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