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if the wage rate increases from $8 to $10 and, as a result, the quantity demanded of labor decreases from 5,000 workers to 4,500 workers, then the absolute value of the elasticity of demand for labor is: group of answer choices 0.47 1.14 2.11 0.95 2,57

Answer :

The labor demand elasticity is 0.47 in absolute terms.

Define Wage Rate.

The fundamental remuneration for each unit of output or of time is quantified by wage rates. It depends on either the quantity of production hours or workplace productivity.

The labor market's elasticity measures how sensitively the demand for labor responds to changes in wage rates. It quantifies the proportionate change in labor demand when the wage rate varies proportionately, to put it another way. Given that it takes time for individuals to react to changes in relative earnings, the supply curve of labor is often inelastic in the near run.

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