1.) Consider a firm for which production depends on two normal inputs, labor and capital. Suppose the wage rate (w) increases from 25 to 30, and the price of capital (r) increases from 10 to 15, and suppose the output price (p) is unchanged. a. In which direction will the substitution effect change the firm's employment and capital stock? Briefly justify your answer. b. In which direction will the scale effect change the firm's employment and capital stock? Briefly justify your answer. c. Can we say conclusively whether the firm will use more or less labor? Briefly justify your answer. d. Can we say conclusively whether the firm will use more or less capital? Briefly justify your