Question: Answer option E is wrong, please answer with explanation. In a country called Uncle Sam Land (USL), the labor demand curve is given by: W
Answer option E is wrong, please answer with explanation.

In a country called Uncle Sam Land (USL), the labor demand curve is given by: W =K - 4L Where W is the wage rate, K is a variable determined by accumulated capital stock in the country, and L is the labor force in the country. K = 500 is supplied by the capitalists in USL. Next to USL, is Aunt Lewis Land (ALL). ALL is poor and has a Dual Economy. A large numbers of workers in the agricultural sector there are not productive - they are disguised unemployed. They are looking for jobs. Wage in ALL is institutionally fixed at W = 10. Although USL had built a strong impenetrable border wall to prevent ALL migrants from moving in, a firm in USL, called "Coyote International," was able to fly over the impenetrable wall in a helicopter and bring job seekers from ALL who wanted to migrate to USL. As a result of this, USL labor force increases to 110 (L = 110 now). All workers work no matter what the wage is. What is the new national income in USL after migration takes place? Select one: O a. 6242 O b. 45000 O c. 26,242 O d. 30,800 e. None of the above X
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