21.5 Assume the quantity of envelopes licked per hour by Sticky Gums, Inc., is Q= 10,000 vZ, where L is the number of laborers hired per hour by the firm. Assume further that the envelope-licking business is perfectly competitive with a market price of $.01 per envelope.

a. How much labor would be hired at a competitive wage of $10? $5? $2? Use your results to sketch a demand curve for labor.

b. Assume that Sticky Gums hires its labor at an hourly wage of $10. What quantity of en velopes will be licked when the price of a licked envelope is $.10, $.05, $.02? Use your re sults to sketch a supply curve for licked envelopes.