Problem
A firm has the production function Q = LK. For this production function, MPL = K and MPK = L. The firm initially faces input prices w $1 and r $1 and is required to produce Q = 100 units. Later the price of labor w goes up to $4. Find the optimal input combinations for each set of prices and use these to calculate the firm's price elasticity of demand for labor over this range of prices.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.