If wages increase at a 5% rate and the quantity demanded of labor decreases by 10%, then the demand curve for labor is

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Quizplus · Accepted Answer

The demand curve for labor is considered elastic when the percentage change in quantity demanded is greater than the percentage change in price (in this case, wages). Here, a 5% increase in wages leads to a 10% decrease in the quantity demanded of labor, indicating an elastic demand.

If Wages Increase at a 5% Rate and the Quantity