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Suppose youre a pizzeria owner. You purchase labor (L) and (K). Your end-of-quarter report looks like the following: Monthwr
• Own-wage elasticity of labor demand: %AL -25% n = 0 %Aw +2007 = -1.25 . Cross-elasticity of capital demand: %AK - 10% = -0.
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Amy own wage n = % AL low elasticity of labor demand - (A/L) x 100% (Aw/w) x 100% I 0 12-10 x 100%. 15-20 20 12-10 10 -25%. LAs Wage erate increases, then demand for labor decmeans becaum nove peop it is necessary to pay higher wages to labor. an so

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