Suppose the elasticity of labor demand is 1.4. Then a decrease in the wage rate will

A) decrease total wage income.
B) increase total wage income.
C) have no impact on total wage income.
D) have an indeterminate impact on total wage income.

Elasticity

A measure of how much the quantity demanded of a good or service changes in response to a change in its price or other factors, such as consumers' income.

Labor Demand

The total amount of workers that employers are willing and able to hire at a given wage rate in a particular market or industry.

Wage Rate

The amount of money paid to a worker per unit of time, serving as compensation for labor services.