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According to the Price-band model and the corresponding figure, please answer the following questions regarding a household with a farm A5 and a demand for
According to the Price-band model and the corresponding figure, please answer the following questions regarding a household with a farm A5 and a demand for labor for that farm equal to D5(A5): a) What is the labor strategy of this household? (Do family members work on the farm or off the farm? Do they sell their labor or hire a labor force?) b) To which category of the five categories of households does this household belong? D6(A6) Household labor supply (on, off) D5(A5) w paid On Hire in w+ TCh in hiring D4(A4) TC in hiring = TCh Shadow D3(A3)_ _ _On-_ _ _ _- Market wage =W wage Self-sufficient D2(A2) DI(A1) TC in selling = TCs On Off w paid W - TCS in selling Labor demand for farm (on, in), according to farm size (A) Labor (on, off, in)
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