If an Increase in the Hourly Wage Rate from $5

question 62

Multiple Choice

If an increase in the hourly wage rate from $5 to $6 causes a worker to work 5 hours rather than 4, the worker's elasticity of labor supply is equal to:

• A) 0.8.
• B) 1.25.
• C) 0.833.
• D) 2.

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