QUESTION 5 Consider the following information regarding a hypothetical manufacturing rm: Its production is contingent on two normal inputs: labour and capital Their prices are denoted as w and r, respectively. Initially the rm faces market prices of w = $6 and r = $4. Subsequently, these prices then change to w = 4 and r = 2. a) In which direction will the substitution effect change the f1rm's employment and capital stock? b) In which direction will the scale effect change the rm's employment and capital stock? c) Can we say conclusively whether the rm will use more or less labour? More or less capital