Please see 2.

to workers? 2. Let Aw = (wb- Wa) denote the wage differential between industries a and b. Suppose the wage offered by industry a is constant at Wa= $8,000, but that b's wage, wb is variable. Assume the supply of labor to industry b is S(Aw) = -10 + 3.Aw and that b's demand for labor is D(wb) = 30 - wb. What is the equilibrium wage differential Aw* that will compensate workers in industry b for wage variations? What would happen if wa increased to $20,000? 3. In Nova Scotia, as in other Canadian provinces, consulting fee of physicians is determined by the provincial government. According to Statistics Canada, Nova Scotia has one of the highest physician to patient ratio in the country