Assignment 2 Questions Please read each question very carefully to ensure your full comprehension of the question. Question 1 (25 points): An economy can produce good 1 using labour and capital and good 2 using labour and land. The total supply of labour is 100 units. Given the supply of capital and land, the marginal products of labour for the two goods are as follows: Workers Employed MPL in Sector1 MPL in Sector 2 10 150 140 20 115 105 30 90 85 40 72 70 50 60 60 60 50 52 70 42 45 80 36 40 90 32 37 100 30 36 points] a) Suppose that the price of good 1 is $1 and the price of good 2 is $2. Determine graphically the wage rate and the allocation of labour between the two sectors. [8a) Suppose that the price of good 1 is $1 and the price of good 2 is $2. Determine graphically the wage rate and the allocation of labour between the two sectors. [8 Points] 13) Suppose that the relative price of good 2 falls to 1. Repeat 3). [8 points] c) Calculate the effects of the price change on the income of the specic factors in sectors 1 and 2. [9' points]