During the last business cycle, the wage rate of an occupation fell by 5% over a year,

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During the last business cycle, the wage rate of an occupation fell by 5% over a year, while the number of jobs in that occupation increased by 2% over the year.

a) Write the proper formula for the coefficient of wage rate (price) elasticity of demand. 2 Marks

b) Determine the coefficient of wage rate elasticity of demand based on the figures provided. 2 Marks

c) Is the demand for these workers elastic or inelastic in this part of the demand curve? Explain. 1 Mark

Posted Date: Jun 13, 2024 09:15 AM

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During the last business cycle, the wage rate of an occupation fell by 5% over a year,

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