Please also explain why each statement is true or false

(c) (10 points) There are two firms. For the first firm, the elasticity of demand for output for the firm, cop, is equal to -2. For the second firm, the elasticity of demand for output for firm 2, cop, is equal to -4. Determine if the following statement is either True or False: If there is a one percent change in the wage, then we expect that the percentage change in labor demand is larger in magnitude for firm 1 than it is for firm 2. (d) (10 points) Suppose that each Starbucks store has the following production function for sugary caffeinated beverages: Q = 2KE The firm is in the short run, and capital is held fixed. The firm uses 4 beverage machines, K, per store to produce Q cups of sugary caffeinated beverages per hour. Suppose that the price of a cup of coffee is $8 per cup and the cost of operating a beverage machine is $6 per hour. Determine if the following statement is either True or False: If the wage is $8 per hour, then the store employs 4 workers and earns $6 dollars per hour in profit