Open Word and answer the following questions. Save the document and print it when you are done. 1. Derive the wage elasticity of short-run labor demand for the general case where Show your work, using...

Open Word and answer the following questions. Save the document and print it when you are done.

1. Derive the wage elasticity of short-run labor demand for the general case whereShow your work, using Word’s Equation Editor.

2. Does your result from the previous question agree with the −4 value obtained in the text?

3. Use the Comparative Statics Wizard to analyze the effect of an increase in the product price in the long run. Compute the P elasticity of L∗ from P = 2.00 to P = 2.10. Copy and paste your results in your Word document.

4. Is L∗ more responsive to changes in P in the short run or long run? Explain why.