Question: Suppose the production function is Y-10KLS. Where K is amount of capital and L is amount of labor. The economy begins with 900 units

Suppose the production function is Y=10K L05. Where K is amount of capital and L is amount of labor. The

Suppose the production function is Y-10KLS. Where K is amount of capital and L is amount of labor. The economy begins with 900 units of land and 1600 units of labor. a) Calculate real wage. Show the equilibrium of the labor market using graphs and the values of real wage and labor supply. b) Consider that a technological change increased productivity of Labor. (Additional labor can produce more goods compared to previous technology.) Show the effect of the change using graphs. Describe the effect briefly. DO NOT make any calculations. Just describe using graphs.

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