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Calculate the own-wage elasticity of demand
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Assignment Help >> Business Economics
Calculate the own-wage elasticity of demand for occupations a, b, and c below. ED and W are the original employment and wage. E’D and W’ are the new employment and wage. State whether the demand is elastic, inelastic, or unitary elastic.
a. %ΔED = 5, %ΔW = -10
b. ED = 50, W = 7
E’D = 40, W’ = 8
c. ED = 80, W = 8
E’D = 100, W’ = 6
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