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1. Consider the diagram below, which illustrates the transportation market of the United States with two different technologies, water transport (w) and railroad transport (rr).

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Consider the diagram below, which illustrates the transportation market of the United States with two different technologies, water transport (w) and railroad transport (rr). The marginal costs of each are depicted. The demand curves for transportation services in 1820 and 1890 are both depicted. P, MC $11 $10 MCw $9 $8 $7 $6 $5 $4 $3 $2 MCFT D1890 $1 - + - - 1- D1820 $0 Q 0 900 1,000 1, 100 All else equal, find the social savings to the American economy in 1890 from railroads.Consider the colonial labor market depicted in the diagram below. There are three sources of labor supply: free labor (S,), indentured servants (S;), and slaves (S,). The value of the marginal product of labor is also shown. W, Ps, VMPL Sf $10 L8 17 S s VMPL 12 LO L 0 2 8 8 9 8 8 9 8 8 8 9 In this economy, how many of each will be employed? Enter your answer for each as a number. Do not use commas, decimals, or units. If you type in anything but a number, your answer will count as incorrect. Free labor: Indentured servant labor: Slave labor

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