« previous next »

Author Question: The elasticity of demand for employees is -0.50. It is also estimated that the existing minimum wage ... (Read 25 times)

LaDunn

  • Hero Member
  • *****
  • Posts: 526
on: Jul 1, 2018
The elasticity of demand for employees is -0.50. It is also estimated that the existing minimum wage (price floor) has increased the raise the wage by 25 above equilibrium wage. How much would the employment change if the price floor was eliminated?
 
  A) Employment would decrease by 12.5.
  B) Employment would increase by 12.5.
  C) Employment would decrease by 25.
  D) Employment would increase by 25.

Question 2

If the cross price elasticity of two goods is -3.5, then
 
  A) these two products are relatively elastic substitutes.
  B) these two products are relatively inelastic substitutes.
  C) these two products are relatively elastic complements.
  D) these two products are relatively inelastic complements.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


spencer.martell

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Myocardial Oxygen supply and demand Myocardial Oxygen supply and demand
An Oil-dependent World— Supply and Demand Driven An Oil-dependent World— Supply and Demand Driven
Estimated Number of New Sexually Transmitted Infections Estimated Number of New Sexually Transmitted Infections
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
Comparison of Alpha Modified Eagle’s Minimum Essential Medium with Dulbecco’s Modified Eagle’s ... Comparison of Alpha Modified Eagle’s Minimum Essential Medium with Dulbecco’s Modified Eagle’s ...
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
Video: Protein Structure - Primary, Secondary, Tertiary and Quaternary

For a complete list of videos, visit our video library