The Elasticity of Demand for Employees Is -0

question 50

Multiple Choice

The elasticity of demand for employees is -0.50.It is also estimated that the existing minimum wage (price floor) has increased the raise the wage by 25% above equilibrium wage.How much would the employment change if the price floor was eliminated?

• A) Employment would decrease by 12.5%.
• B) Employment would increase by 12.5%.
• C) Employment would decrease by 25%.
• D) Employment would increase by 25%.

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Definitions:

Financial Problems

Difficulties in managing money effectively, resulting in insufficient funds to cover expenses or debts.

Working Mothers

Women who balance employment with the responsibility of raising children, often facing challenges related to work-life balance, childcare, and societal expectations.

Lower Wage

A term referring to earnings that are below the average or median level of pay in a given region, sector, or occupation.

Verbal Sexual Harassment

Unwanted and inappropriate verbal comments, jokes, or gestures of a sexual nature that create an offensive or hostile environment.