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The concepts of elasticity can also be applied to the markets for inputs. Suppose that there is a decrease in the demand for labor which

The concepts of elasticity can also be applied to the markets for inputs. Suppose that there is a decrease in the demand for labor which causes the equilibrium wage rate to fall from $21 per hour to $19 per hour. As a result, the quantity of labor supplied declines by 2%. Using the midpoint formula, calculate the elasticity of supply in this labor market. Once you have the result interpret your answer.

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