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Consider a state, its economy is largely based on two sectors, e.g. manufacturing and services. Most of local labor forces are employed in either automobile

Consider a state, its economy is largely based on two sectors, e.g. manufacturing and services. Most of local labor forces are employed in either automobile manufacturers or traditional service industries (catering, education, retail and state employees). At state level, total employment is 1.6 million (or 1600 thousand). Demand functions for labor force in manufacturing (M) and service (S) are given as following.

Following the condition in (1) which adjusts to equilibrate total labor supply and total labor demand in that state. Calculate wages in the two sectors (Wm and Ws) and the employment in each sector (M and S).

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