If the wage paid to automobile workers goes up by 3.5 percent and the own-wage elasticity of demand for automobile workers is -0.5, the percentage…
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If the wage paid to automobile workers goes up by 3.5 percent and the own-wage elasticity of demand for automobile workers is -0.5, the percentage change in the quantity of workers demanded must be
a. −1.5%.
b. −1.75%.
c. −3%.
d. −7%.
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