Question: ( 2 4 ) d ) Unfortunately, a strong earthquake ( 5 . 9 on the Richter scale ) destroyed 2 5 % of Arcadia's

(24) d) Unfortunately, a strong earthquake (5.9 on the Richter scale) destroyed 25% of Arcadia's capital. However, thanks to the very strict construction laws in the country, the population was not harmed, and the labour force remained unchanged at 200.(Assume again that a=0.2,b=0.8).
(i) What is the new total output level in Arcadia? By how much has it changed? Calculate. (Round off to the nearest whole number.)
Explain the change in words (i.e., is it higher or lower than the initial value, and why?). Draw a graph of the production function with K on the horizontal axis to illustrate the change. Show your work.
( 2 4 ) d ) Unfortunately, a strong earthquake (

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