Post Utme Elizade University 2023 Economics Question 2

Practice objective / multiple choice question 2 from the 2023 Post Utme Elizade University Economics examination.

Post Utme Elizade University 2023 Economics Objective / Multiple Choice
Question 2 POST_UTME_ELIZADE_UNIVERSITY • 2023 • ECONOMICS • objective

A firm's demand for labor is given by the equation Q = 100L^\( -1/2 \), where Q is the quantity of labor demanded and L is the wage rate. If the wage rate increases from ₦100 to ₦120, what will be the effect on the quantity of labor demanded?

Answer Options

A. The quantity of labor demanded will increase.
Correct Answer B. The quantity of labor demanded will decrease.
C. The quantity of labor demanded will remain unchanged.
D. The effect on the quantity of labor demanded is uncertain.
Correct Answer
B
Correct Option:
The quantity of labor demanded will decrease.

About This Question

This is Post Utme Elizade University 2023 Economics Question 2. It is one of the objective questions from the 2023 Post Utme Elizade University Economics examination.

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