Suppose that the labor demand is given by the equation L= 4000 -20W, where L is...

Suppose that the labor demand is given by the equation L= 4000 -20W, where L is the number of legal assistants and W is the daily wage. If W=$80, calculate the own wage elasticity of labor demand. Is the demand for legal assistants elastic or inelastic at this point?

Suppose that the wage rose to $150. Calculate the own wage elasticity of labor demand. Is the labor demand elastic or inelastic at this point?

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Rahul Sunny answered 1 year ago

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