If the Own-Wage Elasticity of Demand for Professors Is -0

question 19

Multiple Choice

If the own-wage elasticity of demand for professors is -0.5,then an increase in the wage of professors from $45,000 to $55,000 will cause the quantity demanded to fall by

• A) 2%.
• B) 5%.
• C) 10%.
• D) 20%.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses from its total revenues; also known as net profit.

Income

The amount of money received by an individual or business in exchange for providing a good or service or through investing capital.

Loss

A financial term representing the amount by which expenses exceed revenues.

Acceptance

The agreement to the terms of an offer, contract, or document, thereby creating a legally binding obligation.