The reservation wage is the minimum wage rate that an unemployed ...

[chads108]

The reservation wage is the minimum wage rate that an unemployed worker must receive before employment is accepted.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

If the price elasticity of demand for a good is 5.0, then a 10 percent increase in price results in a
 a. 0.5 percent decrease in the quantity demanded.
  b. 2.5 percent decrease in the quantity demanded.
  c. 5 percent decrease in the quantity demanded.
  d. 50 percent decrease in the quantity demanded.

[Brenm]

Answer to Question 1

True

Answer to Question 2

d