The Own Wage Elasticity

question 12

Multiple Choice

The own wage elasticity

• A) is the percentage response in labor supply induced by a 1% impulse in the wage.
• B) is the effect of a 1% increase in wage on the decision to participate in the labor force.
• C) is always negative.
• D) is always positive.
• E) is always one.

---

Definitions:

Illinois Central Railroad

A historic American railroad that operated in the central United States, particularly known for its role in the development of the railway network from the Great Lakes to the Gulf of Mexico.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Elastic

A characteristic of demand or supply where a change in price leads to a significant change in the quantity demanded or supplied.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a product or service to a change in its price.