Question: The below table shows the output associated with each quantity of labor, assuming the level of capital is fixed. Number of workers 0 1 2

The below table shows the output associated with each quantity of labor, assuming the level of capital is fixed.

Number of workers 0 1 2 3 4

Output per hour 0 10 18 24 28

The market wage decreases by 4%. In response, the firm increases its employment by 12%. What is the elasticity of labor demand?

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