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The labor demand curve for Dance a Lot Shoes can be sketched as follows: - Horizontal axis: Quantity of Labor (L) - Vertical axis: Wage
The labor demand curve for Dance a Lot Shoes can be sketched as follows: - Horizontal axis: Quantity of Labor (L) - Vertical axis: Wage Rate (W) Points on the demand curve: 1. At L = 0, W = $0 (No labor is hired at zero wage). 2. At L = 1, W = $1,500 (The wage rate is $1,500 for the first worker). 3. At L = 2, W = $1,500 (The wage rate remains $1,500 for the second worker). 4. At L = 3, W = $1,500 (The wage rate remains $1,500 for the third worker). 5. At L = 4, W < $1,500 (The wage rate is less than $1,500 for the fourth worker). 6. At L = 5 and L = 6, W < $1,500 (The wage rate is less than $1,500 for additional workers)
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