In November 2018, Amazon announced that Headquarter 2 (HQ2) would be split into two locations, with 25,000 workers at each: National Landing in Virginia, and Long Island City in New York City. The benefits and the cost of to the city

a)Identify and explain the effect of Amazon HQ2 on the demand of labor. (6 points)

b)Identify and explain the effect of Amazon HQ2 on the supply of labor. (6 points)

c)Use a graph to illustrate the effects of Amazon HQ2 on the urban labor market, including values for the equilibrium wage and equilibrium total employment. Argue why Amazon HQ2 would increase total employment in the city. (8 points)

d)Use a graph to illustrate the effects of Amazon HQ2 on the urban labor market, including values for the equilibrium wage and equilibrium total employment. Argue why Amazon HQ2 would decrease total employment in the city. (8 points)