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In a country called Uncle Sam Land (USL), the labor demand curve is given by: W = K - 4L Where W is the wage

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 numbers 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 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 tofly over the impenetrable wallin a helicopter andbring job seekers from ALL who wanted to migrate to USL. As aresult of this, USL labor force increases to 110 (L = 110 now).All workers work no matter what the wage is.

What is the new national income in USL after migration takes place?

Group of answer choices

a)6242

b)45000

c)26,242

d)30,800

e)None of the above

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