Asked by Rojita Malla on Jul 24, 2024
Verified
If a group has a positive elasticity of labor supply, then increases in wages will result in continued increases in the quantity of labor supplied.
Elasticity of Labor Supply
The responsiveness of the quantity of labor that workers are willing and able to provide to a change in the wage rate.
Wages
Payments made to workers for their labor, typically calculated on an hourly, daily, or piecework basis.
Quantity of Labor
The total number of labor hours employed or the total number of workers employed in the production of goods and services.
- Investigate the relationship between elasticity and labor supply and demand, particularly in response to wage fluctuations.
Verified Answer
SD
Stoney DillardJul 26, 2024
Final Answer :
True
Explanation :
A positive elasticity of labor supply indicates that as wages increase, the quantity of labor supplied also increases, reflecting a direct relationship between wage levels and labor supply.
Learning Objectives
- Investigate the relationship between elasticity and labor supply and demand, particularly in response to wage fluctuations.