I am not sure how to set up my equations for each part of this problem.

Problem 4 4 Analytical Section III - Fighting Inequality (20P) Imagine you have been appointed the Chief Economic Advisor to a political campaign in the United States. Being an interested public policy researcher, you know that the demand for labor is not very price sensitive (i.e. -0.8) and that the average wage is $ 10.00 per hour. In addition, after having reviewed the Department of Labor (USDA) statistics, you know that the total labor force is 300 Million with a total amount of unemployment ranging around 10.0% (i.e., 30 Million). Recent research indicates that the elasticity of labor supply is 0.2. (Hint: For your calculations, please use 300 for 300 Million.) 4.1 Market Equilibrium in the US Labor Market (5P) Derive the labor market equilibrium analytically. In addition, explain briefly in your own words what the labor demand elasticity (-0.8) implies for the US Labor market? (Hint: Derive the labor demand curve first. Please keep in mind that the market equilibrium is reached when all the labor force is employed. The demand function for labor equals Ld = 486 -21.6W, whereby labor supply can be written such that Ls = 240 + 6.96W. Please use these functions to cross-check your own result.) 4.2 The Demand and Supply for Labor (5P) Please illustrate graphically demand and supply in the US labor market. (Hint: Please use the concrete numbers. The y-ares is the hourly wage (W), and the r-ares represents the amount of employed labor force (L).) 4.3 The Minimum Wage and Labor Market Equilibrium (5P) The current minimum wage in the United States is on average $ 7.36 per hour. Depict the minimum wage graphically. Describe (i.e. max. two arguments) what effect the minimum wage has on the US labor market. Additionally, explain briefly why such a simplification of the US labor market is misleading for deriving concrete public policy measures (Hint: mar. 2 sentences). 4.4 Job Creation Made Easy (5P) Describe and evaluate briefly the effects of a 'revolutionary' wage of $25 per hour would have on the labor market. Please explain as to why this increase in the wage rate would be beneficial or destructive in achieving the goal of reducing income inequality among U.S. citizens. When evaluating these policies, please take one position either for why or for why not this policy instrument can be anticipated to succeed or fail (Hint: mar. 5 sentences)