1. A) List and describe three factors that have an impact in determining the wage

elasticity of demand for an occupation. 3 Marks

B) A hospital increases the pay rate of doctors by 20%. Result: The hospital experiences only a 5% increase in the number of hours worked by doctors on average. A fast-food restaurant increases wages by 5% they find the average worker is prepared to work 20% more hours. Explain which occupation has an elastic supply, and which has an inelastic supply. 2 Marks