Suppose That,as a Result of an Increase in the Market

question 29

Multiple Choice

Suppose that,as a result of an increase in the market supply of labor,the wage rate has fallen 10%.After adjusting its employment levels,a firm finds its total wage bill has decreased.This occurrence indicates that the firm's labor demand:

• A)is inelastic over this range of wages
• B)is elastic over this range of wages
• C)is unit elastic over this range of wages
• D)was inelastic at the old wage,but is elastic at the new,lower wage

---

Definitions:

Model

A representation or abstraction of a real-world situation, phenomenon, or system, often used for analysis or prediction.

Thousands Passengers

Thousands Passengers refer to a unit of measurement, often used in transportation statistics, to quantify the number of passengers in multiples of thousands.

Standard Form

An equation format, especially for linear equations, where Ax + By = C, where A, B, and C are integers, and A should be non-negative.

Imaginary Unit

The unit of an imaginary number, usually denoted as 'i', and defined as the square root of -1.