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If the total compensation (price) decreases by 10%, the number of employees that will be willing to work (labor supply) decreases by 18%, then what is Price Elasticity of Labor Supply? 1.5 1.8 10% 18% 

          If the total compensation (price) decreases by 10%, the number of employees that will be willing to work (labor supply) decreases by 18%, then what is Price Elasticity of Labor Supply?

1.5
1.8
10%
18%
If the total compensation (price) decreases by 10%, the number of employees that will be willing to work (labor supply) decreases by 18%, then what is Price Elasticity of Labor Supply? 1.5 1.8 10% 18%

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Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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If the total compensation (price) decreases by 10%, the number of employees that will be willing to work (labor supply) decreases by 18%, then what is Price Elasticity of Labor Supply? 1.5 1.8 10% 18%
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Transcript

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00:01 So here we're talking elasticity and we in particular are talking the price elasticity of demand.
00:09 And price elasticity of demand is thinking about how the quantity demanded changes in response to a change in the price.
00:17 And in terms of the labor market, right, we usually call the quantity demanded l, the number of workers, and we call the price the wage, right? and we're told that this is initially 0 .1.
00:30 Now this should be minus 0 .1, right? demand curves slope down, but economists are lazy and like to leave out the sign.
00:38 So we are told that the wage is going from 10 to 15 and this is plus 15 percent, right? oh sorry, 50 not 15...
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