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For each of the following examples, choose the case with the lower (more inelastic) wage elasticity. Assume an $18 per hour wage rate: Serpent Brewing

For each of the following examples, choose the case with the lower (more inelastic) wage elasticity. Assume an $18 per hour wage rate:

  1. Serpent Brewing is a brewery in Nova Scotia. Would you expect Serpent Brewing's demand for beer tasters to have a lower wage elasticity than their beer production line workers? Explain.
  2. Nova Scotia's Non-Essential Pesticides Control Act, which came into effect in 2012, covers the "cosmetic" use of pesticides for lawn care and ornamental plants on residential, commercial, government, and institutional properties. Would you expect a farms demand for farm labour for weeding, in a jurisdiction where herbicides are banned for environmental reasons to have a lower wage elasticity than a jurisdiction where they are not? Explain.
  3. A coal mine's demand for labour, where the mine has a local monopoly in the sale of coal, versus a mine that sells coal in a competitive market.
  4. The demand for workers in a tobacco (cigarette) factory versus the demand for workers at a KFC (fast food restaurant).
  5. The demand for computer programmers versus secretaries for factories in Canada's Silicon Valley- Toronto-Waterloo Tech Corridor.

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