Ch 6 hw.docx - Michael Megery Ch 6 Hw Micro M-W 11-1215...

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Michael Megery Ch 6 Hw Micro M-W 11-1215 Chapter 13 Q&P: 1, 7, 14 N&G 1, 2 1.)It means that it is the result of some other demand. 7.) As labor productivity increases, so do wage rates. This is because there is an increase in labor productivity (MPP) causes the demand for labor to rise, by increasing the marginal revenue product (MRP). MRP = MPP x MR. 14.) A-If the demand for the product that labor produces is highly elastic, a small percentage increase in price will decrease quantity demanded of the product significantly, which will decrease the quantity of labor demanded. So, the higher the elasticity of demand for the product, the higher the elasticity of demand for labor; and, likewise, the lower the elasticity of demand for the product, the lower the elasticity of demand for labor.

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