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5. Susie owns a hipster diner in the Columbus, OH metro area. Use a diagram to predict the effect of the COVID 19 pandemic on

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5. Susie owns a hipster diner in the Columbus, OH metro area. Use a diagram to predict the effect of the COVID 19 pandemic on employment at Susie's diner in the short~run. Assume all of the standard assumptions apply. Fully label your diagram. Briey describe what you show. 6. Show that if (i) output demand is perfectly inelastic and (ii) labor and capital are perfect complements then the demand for labor is perfectly inelastic. Explain your reasoning. 7. Suppose that the government requires the rm to contribute 10% of workers' earnings to a retirement fund (on top of what is already paid). Use a diagram to predict the effect of this requirement on long-run labor demand and capital demand if the scale e'ect is greater than. the substitution e'ect. Assume all of the standard assumptions apply. Fully label your diagram. Briey describe what you show

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