When the Labor Supply Curve Is Inelastic

question 96

Multiple Choice

When the labor supply curve is inelastic:

• A) the percentage change in the quantity of labor supplied exceeds the percentage change in the wage.
• B) the percentage change in the quantity of labor supplied is less than the percentage change in the wage.
• C) the percentage change in the quantity of labor supplied equals the percentage change in the wage.
• D) employers cannot lower wages without losing all their workers.

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Definitions:

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