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3.7 Elasticities of demand

3.7 Elasticities of demand. Elasticity is a measure of the sensitivity between two variables. The elasticity of the demand for labor: E D L = ?%L / ?%W < 0 Always (-), by convention we can ignore the sign: | E D L | = 0 ? perfectly inelastic 0 < | E D L | < 1 ? inelastic

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3.7 Elasticities of demand