Explanation: Close Explanation ~ When L increases by 10% (i.e., L2 = 1.1L), Q2 is given by: Q2 = 2.5 X L205 x 10.5 = 2.5 x (1.1L) 0.5 x 10.5 = VI.1 x 2.5 x 10.5 x KO.5 = 1.0488Q Therefore, the output increases by 4.88% if labor input is increased by 10% while capital input is held constant