1. List and describe three factors that have an impact in determining employer's

wage elasticity of labour demand in an occupation. 3 Marks

1. Assume the coefficient of wage elasticity of demand for an occupation is 2.0. At beginning of last year 120,000 workers were employed in the occupation. All other factors remaining the same, if wages in this occupation increase by 6% during the last year calculate and predict the number of workers that will be employed at the beginning of this year. 2 Marks