Asked by Ryan

The president of the United Auto Workers noticed that whenever he negotiates a pay increase for the UAW membership, the number of jobs available for the union membershiop is unaffected for the first few months but over the following months the number of jobs decreases. On average, for every 1% change in the wage rate, there is a result of 1.5% loss in the number of jobs. Calculate the price elasticity of demand for the UAW member services.
Answered by economyst
price elasticity is (%change in Q)/(% change in P). Here Q is the number of jobs and P is the price of labor aka the wage rate.
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