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please help me to solve this question. 1. Labor Allocation Graph. Assume a developing country has two sectors in the economy, agriculturali'rural and manufacturingi'urban described

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1. Labor Allocation Graph. Assume a developing country has two sectors in the economy, agriculturali'rural and manufacturingi'urban described by the following labor demand equations. Please assume full employment for the entirety of this problem. Note that the total number ofL in this economy is 100 (i.e. LA + LM = 100). Ld (A): v.0. = 1200 - ZOLA Ld (M): W = 1450 SOLM (a) Draw a dual economy graph and solve for equilibrium labor allocation and wages in each sector. (b) Assume that restrictive government regulations effectively limit the manufacturing sector to 42 workers. Show (and solve) for the new labor allocation and wages for both the rural and agricultural sector. Solve (and show) the output shortfall. Briey summarize the economic problems with the restrictive government regulations; link your discussion to the ppf for this country. 2. Debates about Migration Please read the following articles: h :r'i'wrwihe uardiancomfcommentis'ee13ioctz'07fdominican-re ublic-haiti-lon -histo -conflict than-the-sum-of-its-parts A tension for migration issues is often the impact of migrants on local labor markets (this is true both the USIMexico and Haitir'Dominican Republic). (a) Use labor SID to explain why a government might think a deportation policy (like in the first article) would be politically popular. Who, in the Dominican Republic, would benet from a mass deportation policy? Who would not? (b) Based on the second article (and using a labor SID) demonstrate rst how the graph would potentially support the \"pessimistic myths\" [from the statement: \"pessimistic myths surrounding migration and trade in the island are questioned by the empirical findings: there is not conclusive evidence that Haitian immigrants depress the incomes of unskilled Dominican natives." Then discuss whether the World Bank agrees with these \"myths\"what is their claim instead? 3. Consider the issue of labor migration on the island of Hisponiola as a labor allocation problem with difference in wages caused by the border. (a) Draw this graph and include the possibility of unemployment on your graph. (b) From our discussion about migration, list two issues that might create \"bad information\" about the decision to migrate for Haitians interested in working in the DR. (c) From your graph in (a) can you think of a policy solution that would improve the situation and improve wages for Haitians without hurting wages in the DR

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