Consider the firm’s demand (MRP) for labor, such as in Figure 16-2. If the demand elasticity is -0.5, what will be the effect of increased wages on total labor earnings? Using Figure 16-3, graph and...

Consider the firm’s demand (MRP) for labor, such as in

Figure 16-2. If the demand elasticity is -0.5, what will be

the effect of increased wages on total labor earnings?

Using Figure 16-3, graph and analyze the impact of an increase in the price of lab tests on the labor market.