Problem 6.1: Minimum Wage. (20 points) Assume that the labor demand curve is given by w = 800 2n and the labor supply curve is w = 200 + 4a, where w is the wage and n are the number of people that work. Suppose that the total population is equal to N = 150. (a) Find the wage rate such that the entire population is working. (b) Suppose the wage is 700. What is labor supply, i.e. how many people would work in this economy? [Hint for the next questions: In part (b), we would say that unemployment is zero. Labor supply is less than N, but the difference between the two are people who do not want to work at wage 700. We would consider them out of the labor force] (c) Derive the equilibrium wage and number of people that work in this economy, as well as the employment-population ratio and the unemployment rate. (d) Find the employment-population ratio and the unemployment rate if the wage rate cannot fall below 500 because of minimum wage laws. (e) Find the employment-population ratio and the unemployment rate if the wage rate cannot fall below 700 because of minimum wage laws