Assuming that a tea plantation has market power in the market for tea workers, explain how it could use that power in setting the wage rate.
Draw a graph to illustrate your answer.

Sri Lanka’s workers want a daily wage rate of 1,000 rupees. In January, trade unions and tea plantations negotiated an increase in the wage rate by 40 percent to 700 rupees a day. Academics say that even 1,000 rupees a day is less than what workers need to live.