The function from problem 3 is: l(q,r,w) = 0.6q^0.8 * r^0.2 * w^-0.4

Problem 4 a) While checking property d) in problem 3 you have derived the same or another correct contingent demand function for labour. Now also derive the contingent demand function for capital, i.e. b) Now derive the marginal change of contingent labour demand for an increase in capital price v. Also derive the marginal change of contingent capital demand for an increase in labour price w. What do you find when you compare the two? c) Young's theorem says that the second cross derivatives of a function f(x,y) are the same independent of Can this help you to explain the result in b)? the order of differentiation, i.e. f xy