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1. Consider a model of where the labor market is segmented and in which there are two distinct marketsone for skilled and another for unskilled labor. Suppose that the equilibrium wage is lower than the minimum wage in the unskilled market but higher in the skilled market. Draw diagrams of the two markets noting the market-cleanng wage, the minimum wage. and the impacts on employment in both markets 2. In the market where MW caused a reduction in employment, graphically show how an individual rm perceives its own labor supply and explain how it would respond when a MW above the market clearing wage is imposed. 3. Suppose that in the market where MW caused a reduction in employment. there was a leftward shift in the labor demand curve. How are wages and employment levels affected? Which theory of unemployment best explains the cause of unemployment in this scenario? 4. Now suppose that the market for unskilled and skilled labor are monopsonistic and that a minimum wage was imposed. and this led to a higher level of employment in both markets. Ceteris paribus. in which market do you expect this positive effect to be larger