this is a question about economic

Problem #2: Suppose there are two rms in a perfectly competitive industry: Firm 1 and Firm 2. The two rms' labour demand functions are given as the following: L1)1 = so 30w L0; = so 40w Answer the following questions: a) Calculate the labour demand of the market. b) Suppose the labour supply of the market is: L5 = -20 + 50w. Calculate the equilibrium wage rate. ' c) Assume that the government starts taxing consumption of the outputs produced by this industry, which causes the quantity demanded for the product to decrease. As a derived demand, the labour demand of Firm 1 and Firm 2 both decrease by [0%. Calculate the new labour demand of this market. _ d) Calculate the new equilibrium wage rate with the e'ect of the tax