Question
how does own elasticity of labour demand affect labour price and quantity, assume wage rate is increasing right now and labour market is perfect competition.
how does own elasticity of labour demand affect labour price and quantity, assume wage rate is increasing right now and labour market is perfect competition. Assume demand for larbour is down-ward sloping.
I have two possible ways for solving it but I do not know which is correct.
Do I solve by drawing a gragh and focus on elasticity change on the demand curve
or drawing several demand curves, and think the greater the slope, the inelastic the demand.
I am confused about which approach is right way to solve the question.
Only need clarification of which way is reasonable, ne gragh is required
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