What will the elasticity of resource demand be if unit wages rise by 5 percent and the number of employed workers falls by 9 percent?
A)3.00
B)2.36
C)0.56
D)1.80

Name: What will the elasticity of resource demand be if unit wages rise by 5 percent and the number of employed workers falls by 9 percent? A)3.00 B)2.36 C)0.56 D)1.80
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Question

Quizplus · Accepted Answer

Elasticity of resource demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, it is -9% / 5% = -1.80.

What Will the Elasticity of Resource Demand Be If Unit