Suppose the coefficient of elasticity of demand for labor is 3. What does this mean? Why are wage rates higher in one competitive labor market than in another? In short, why do wage rates differ?...

Suppose the coefficient of elasticity of demand for labor is 3. What does this mean? Why are wage rates higher in one competitive labor market than in another? In short, why do wage rates differ? Workers in labor market X do the same work as workers in labor market Y, but they earn $10 less per hour. Why?