Answered

From simple questions to complex issues, IDNLearn.com has the answers you need. Get the information you need quickly and accurately with our reliable and thorough Q&A platform.

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

We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Thank you for choosing IDNLearn.com. We’re dedicated to providing clear answers, so visit us again for more solutions.