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) 0.63
B) 1.61
C) 2.90
D) 4.00

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 -5% / 8% = -0.625, which rounds to 0.63.

What Will the Elasticity of Resource Demand Be If Unit