Please answer both questions.
1. a. Explain what is meant by the statement, “the demand for labor is a derived demand?”
b. Explain the connection of elasticity of labor demand to the elasticity of product demand.
4. Why are annual earnings extraordinarily high for some entertainers and professional athletes? How do decisions to hire them differ from the hiring decisions of McDonald’s? (Addressing this question can bring in multiple concepts from this lesson and perhaps some earlier ones.