The Lower the Elasticity of Demand for Labor

question 125

Multiple Choice

The lower the elasticity of demand for labor,

• A)the larger the cutback in labor for a given wage increase.
• B)the smaller the cutback in labor for a given wage increase.
• C)the higher the wage rate that a labor union receives for its membership.
• D)the lower the wage rate that a labor union receives for its membership.
• E)the more members of a given union.

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Definitions:

Broccoli

A green vegetable with a large flowering head, stalk, and small associated leaves, often eaten for its nutritional qualities.

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The additional satisfaction or utility gained from consuming one more unit of a good or service, divided by its cost.

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Tubers of the plant Solanum tuberosum, widely used as a staple food item, grown in various parts of the world.

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Marine or freshwater mollusks with a bivalve shell, often used as food.