assume that labor supply in USL was 100 before immigration took place.

In a country called Uncle Sam Land (USL), the labor demand curve is given by:

W = K 4L

Where W is the wage rate, K is a variable determined by accumulated capital stock in the country, and L is the labor force in the country.

K = 500 is supplied by the capitalists in USL.

Next to USL, is Aunt Lewis Land (ALL). ALL is poor and has a Dual Economy. A large number of workers in the agricultural sector there are not productive - they are disguised unemployed. They are looking for jobs. Wage in ALL is institutionally fixed (subsistence wage) at W = 10.

Although USL had built a strong impenetrable border wall to prevent ALL migrants from moving in, a firm in USL, called "Coyote International," was able to fly over the impenetrable wall in a helicopter and bring job seekers from ALL who wanted to migrate to USL. As a result of this, USL labor force increases to 110 (L = 110 now). All workers (including migrants) work no matter what the wage is.

Draw approximate diagram(s) and answer the following questions:

Graphically identify and calculate the capitalists income triangles (CIT) before and after migration.

Graphically identify and calculate the workers income rectangles (WIR) before and after migration.

Graphically identify and calculate the national incomes of USL before and after migration.