« previous next »

Author Question: The elasticity of demand for employees is -0.50. It is also estimated that the existing minimum wage ... (Read 50 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?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Myocardial Oxygen supply and demand Myocardial Oxygen supply and demand
W-4 form used by employees to request IRS withholding. W-4 form used by employees to request IRS withholding.
It is important for new employees to know the location of all fire extinguishers. (A) Pull the pin ... It is important for new employees to know the location of all fire extinguishers. (A) Pull the pin ...
It is important for new employees to know the location of all fire extinguishers. (B) Aim low toward ... It is important for new employees to know the location of all fire extinguishers. (B) Aim low toward ...
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
What is the minimum number of straight, continuous lines that are necessary to c What is the minimum number of straight, continuous lines that are necessary to c
Video: Status Epilepticus

For a complete list of videos, visit our video library