Tesla plans to move its headquarters to Austin, Texas, a metro area with 1.1 million jobs. Tesla currently expects that half of its staff of 15,000 will move and will fill the remaining positions by hiring new staff once the move takes place. Suppose the elasticity of supply is 4 and the elasticity of demand is -2. Determine the impact on the region’s average equilibrium wage

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To determine the impact on the regions average equilibrium wage we need to consider the elasticity o... View the full answer