Other things being the same, if the demand for labor is inelastic,
A) decreases in wage rates will result in greater payrolls.
B) increases in wage rates will result in greater payrolls.
C) increases in wage rates will result in smaller payrolls.
D) decreases in wage rates will increase both employment and worker incomes.

Question

Quizplus · Accepted Answer

When the demand for labor is inelastic, an increase in wage rates leads to a smaller percentage decrease in the quantity of labor demanded, resulting in an overall increase in total payrolls.

Other Things Being the Same, If the Demand for Labor