Consider the labor demand curve given by the equation 100 L =------- W

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Consider the labor demand curve given by the equation

100

L = -------

For small changes in the wage around any given point on the curve, the slope of the curve (the change in L divided by the change in W) is given by the formula

100

Slope = ? --------

W ²

a. Find the slope of the curve for a small change in the wage around W ₌ $5.

b. Find the own-wage elasticity of labor demand for a small change in the wage around $5.

Related Book For answer-question

Microeconomics and Behavior

ISBN: 978-0078021695

9th edition

Authors: Robert Frank

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Posted Date: Feb 22, 2024 03:15 AM

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Consider the labor demand curve given by the equation 100 L =------- W

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ANSWER As per given in the question Slope 100w2 a ... View the full answer

Microeconomics and Behavior

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