What will the elasticity of resource demand be if unit wages rise by 8 percent and the number of employed workers falls by 5 percent?
A)4
B)2.9
C)1.61
D)0.63

Question

Quizplus · Accepted Answer

The elasticity of resource demand can be calculated using the formula: percentage change in quantity demanded / percentage change in price. Here, it's -5% / 8% = -0.625, which rounds to 0.63, indicating an inelastic demand.

What Will the Elasticity of Resource Demand Be If Unit