Suppose that a union successfully negotiated a 10 percent wage increase and the
ID: 1197734 • Letter: S
Question
Suppose that a union successfully negotiated a 10 percent wage increase and the quantity of labor demanded increased by 10 percent. We can conclude that:
the labor demand curve must have independently shifted to the right.
labor demand is highly elastic.
the coefficient of labor demand elasticity is less than 1.
labor demand is unit-elastic.
the labor demand curve must have independently shifted to the right.
labor demand is highly elastic.
the coefficient of labor demand elasticity is less than 1.
labor demand is unit-elastic.
Explanation / Answer
We can conclude taht the labor demand curve must ahve independently shifted to the right.