Firm "A" hires 20,000 workers if the wage rate is $12 and hires 10,000 workers if the wage rate is $15. Firm "B" hires 30,000 workers if the wage rate is $20 and hires 33,000 workers if the wage rate is $15. What is the short run elasticity of labor demand for Firm A and Firm B?

Firm "A" hires 20,000 workers if the wage rate is $12 and hires 10,000 workers if the wage rate is $15. Firm "B" hires 30,000 workers if the wage rate is $20 and hires 33,000 workers if the wage rate is $15. What is the short run elasticity of labor demand for Firm A and Firm B?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 7E

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Firm "A" hires 20,000 workers if the wage rate is $12 and hires 10,000 workers
if the wage rate is $15. Firm "B" hires 30,000 workers if the wage rate is $20 and hires 33,000 workers if the wage rate is $15. What is the short run elasticity of labor demand for Firm A and Firm B?

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