Imagine a low skill labor market where the marginal revenue product (in a competitive market, MRP serves as the inverse demand curve) curve of MRP-30-0.10, and the inverse labor supply curve is P=6+0.020s. Assume that there is discrimination in the market with group A (fair pay) workers and group B (discrimination pay) workers. We will model discrimination by saying that the demand for type A labor is Pa=MRP=30-0.10, but the demand for type B labor is less, at Pb=24-0.10. Mechanical task (5 points): solve for and compare the labor market quantity and price in the A market and the B market. What do you observe? ii: Open ended a. Assume that the government wants to help Type B workers. What do you think is the best way to do this? Explain your choice. (3 points) b. Build your intervention into the model: (1) Add it in to one or both equations. (2) Solve for the outcome with your intervention. (10 points) Do you think we should do this? Explain, using economic reasoning. (2 points) C. Imagine a low skill labor market where the marginal revenue product (in a competitive market, MRP serves as the inverse demand curve) curve of MRP-30-0.10, and the inverse labor supply curve is P=6+0.020s. Assume that there is discrimination in the market with group A (fair pay) workers and group B (discrimination pay) workers. We will model discrimination by saying that the demand for type A labor is Pa=MRP=30-0.10, but the demand for type B labor is less, at Pb=24-0.10. Mechanical task (5 points): solve for and compare the labor market quantity and price in the A market and the B market. What do you observe? ii: Open ended a. Assume that the government wants to help Type B workers. What do you think is the best way to do this? Explain your choice. (3 points) b. Build your intervention into the model: (1) Add it in to one or both equations. (2) Solve for the outcome with your intervention. (10 points) Do you think we should do this? Explain, using economic reasoning. (2 points) C