Answered

Find the best solutions to your problems with the help of IDNLearn.com. Ask any question and get a thorough, accurate answer from our community of experienced professionals.

If the government raises the minimum wage by 6%, the number of people employed falls by 2%. What is the elasticity of employment with respect to the minimum wage

Sagot :

Abiolataiwo2015idn

Assuming the number of people employed falls by 2%. The elasticity of employment with respect to the minimum wage is -0.33.

Elasticity of employment

Using this formula

Elasticity of employment=-Fall in number of employed people rate /Minimum wages rate

Where:

Fall in number of employed people=-2%

Minimum wages rate=6%

Let plug in the formula

Elasticity of employment=(-2/6)

Elasticity of employment=-0.33

Inconclusion the elasticity of employment with respect to the minimum wage is -0.33.

Learn more about Elasticity of employment here:https://brainly.com/question/8729849

Thank you for using this platform to share and learn. Don't hesitate to keep asking and answering. We value every contribution you make. IDNLearn.com has the solutions to your questions. Thanks for stopping by, and come back for more insightful information.