Suppose the supply of people who want to be “extras” in a film (people who pretend to be minding their own business in the background of a film) is completely inelastic, because they will supply their labor to film production companies no matter what wage they are paid.

a. Draw a diagram illustrating how the equilibrium wage and equilibrium employment level for extras is determined.

b. On the same diagram, illustrate what will happen to the equilibrium wage and employment of extras if the demand in the product market (for films) increases.