When Wages Are Increased

question 57

Multiple Choice

When wages are increased:

• A)reductions in employment may occur if the demand for labor is elastic.
• B)reductions in employment may occur if the demand for labor is perfectly inelastic.
• C)increases in employment may occur if the demand for labor is elastic.
• D)increases in employment may occur if the demand for labor is inelastic.
• E)both productivity and the standard of living increase as well.

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