A higher price level causes

Other things remaining the same, which of the following is likely to increase both the wage rate and the number of workers hired in a rice farm?

A) An increase in the price of rice B) A decrease in the price of rice C) A decrease in the population in the area where the farm is located D) An increase in the population in the area where the farm is located

If the price elasticity of demand for a good is 5.0, then a 10 percent increase in price results in a

a. 0.5 percent decrease in the quantity demanded. b. 2.5 percent decrease in the quantity demanded. c. 5 percent decrease in the quantity demanded. d. 50 percent decrease in the quantity demanded.