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What is the expression for the wage elasticity for a linear demand curve?

Multiple Choice
• W / Nd
• Δ W / Δ Nd
• Δ Nd / Δ W
• (Δ Nd / Nd) / (Δ W / W)
• (Δ W / W) / (Δ Nd / Nd)

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Answer:

Step-by-step explanation:

The expression for the wage elasticity for a linear demand curve is **(Δ W / W) / (Δ Nd / Nd)** . This formula is used to calculate the responsiveness of the quantity demanded of a good or service to changes in wages. The wage elasticity of demand measures the percentage change in quantity demanded resulting from a one percent change in wages .

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