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What is the response in a firm’s labour demand to a fall in the price of capital? How might such a change in the price of capital impact low and high skilled workers? Illustrate your answer with diagrams and / or a model

Economics

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What is the response in a firm’s labour demand to a fall in the price of capital? How might such a
change in the price of capital impact low and high skilled workers? Illustrate your answer with
diagrams and / or a model. Does the empirical evidence presented by Michaels et al. (2010) “Has
ICT polarised skill demand: Evidence from eleven countries over 25 years” support the hypothesis
that skill biased technical change has led to greater wage dispersion? Explain your answer in detail.