Problem
1. What 3 factors have an impact in the determination of the wage elasticity of demand? Feedback.
2. You run an office cleaning company with a staff of 200 cleaning employees. All others things remaining equal, is the coefficient of wage elasticity of demand for office cleaning staff elastic or inelastic? Explain by identifying the factor involved.
3. Many supermarkets are switching to self-serve automated checkouts. All others things remaining equal, is the coefficient of wage elasticity of demand for cashier staff elastic or inelastic? Explain by identifying the factor involved.