Suppose wages increase and other forces affecting demand are held constant. What is called the effect on employment (described below) due to the increase in wages? Also fill in the blanks. Wages increase -> Higher costs-> employment product prices > Consumer buy less -> Employers would their levels of output and a. Scale effect; Higher, reduce b. Substitution effect; Lower increase c. Scale effect; Lower, increase Od. Substitution effect; Higher, reduce QUESTION 2 Suppose wages increase and other forces affecting demand are held constant. What is called the effect on employment (described below) due to the increase in wages? Also fill in the blanks. Wages increase -> Employers cut costs by adopting a technology that relies on capital and on labor > Desired employment would because of a shift toward a more _-intensive mode of production a. Scale effect; more, less, fall, capital b. Substitution effect; less, capital, rise, labor c. Scale effect; less, capital, rise, labor d. Substitution effect; more, less, fall, capital QUESTION 3 Layla's Bacon Cheeseburger Layla has a frozen bacon cheeseburger-making unit and finds that the marginal productivity of labor is MPL = -0.4L+15, where L is the number of labor hours. Bacon cheeseburgers are sold at $2 per kilogram and the wage rate is $15 per hour. If the number of labor hours is 5, calculate the marginal productivity of labor. O a. 11 O b. 13 O c. 10 O d. 12