Respuesta :
The predicted decrease in level of employment percentage is calculated as 6.81%
Elasticity of demand for labor = % Change in Demand for Labor/ % Change in wage
Elasticity of demand for labor = 0.15
% Change in wage = (16-11)/11×100 = 45.45%
Elasticity of demand for labor = % Change in Demand for Labor/ % Change in wage
0.15 = % Change in Demand for Labor/45.45%
% Change in Demand for Labor = 45.45%×0.15
= 6.81%
What is price elasticity of demand means?
Price elasticity of demand is that the ratio of the percentage change in quantity demanded of a product to the percentage change in price. Economists employ it to know how supply and demand change when a product's price changes
Why is price elasticity of demand important?
Price elasticity is that the measure of the market's response to price changes. Elasticity is vital to pricing decisions because it helps us understand whether raising prices or lowering prices will enable us to achieve our pricing objectives.
Learn more about price elasticity of demand:
brainly.com/question/5078326
#SPJ4
