1. Mr. Mullet runs a traveling carnival that hires local workers in each city it visits. The demand for carnival activities is uncertain, with low or high demand equally likely in any given city. At the end of the year, Mr. Mullet reviews his nancial records and discovers some puzzling differences between his experiences in small and large cities. He always paid the same wage in large cities ($9), but paid different wages in small cities ($6 or $12). Also, he always hired the same quantity of labor in small cities (20 workers), but different quantities in big cities (10 or 30 workers). Assume that the demand curves for labor are linear and parallel, with vertical intercepts of $18 (high demand) and $12 (low demand). Illustrate the situation with two graphs, one for the typical small city and one for the typical big city. Compute prot in: a. In the typical big city with high demand b. In the typical big city with low demand c. In the typical small city with high demand d. In the typical small city with low demand In which city, small or big, the expected prot is higher