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ECS2604 ASSIGNMENT 4 SEMESTER 1 2026 - DISTINCTION - DUE 20 APRIL 2026
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ECS2604 ASSIGNMENT 4 2026 DUE 20 APRIL 2026 QUESTION 1 1.1 Explain, with the aid of a figure, the impact of labour demand elasticity on employment because of a wage increase in the unionised sector. When a trade union successfully negotiates a wage increase above the market-clearing level, the impact on employment is not fixed; it depends entirely on how sensitive employers are to the wage change. This sensitivity is measured by the elasticity of demand for labour (Yu, 2018, ch. 5).
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- University of South Africa (Unisa)
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- Labour Economics (ECS2604)
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