Q4(Ch-7, Labor Market): Suppose in SMU nation. The production function is: Y = AKOS LO.5 . Derive a expression for labor demand as a function of wage rate 1 = F(w). . Assume A = 1, A = 100, but SMU government do not know how many labors in market. Nonetheless, government observes that market wage w* = 2. Given these information, 1. How much is labor supply L' in SMU? (remember, [* = [ at equilibrium) 2. How much is rental rate R? . Suppose there is an immigration inflow increase labor supply to 9. What is new equilibrium wage wi? . Suppose government plan to impose a mandatory minimum wage law such that win w*. What will happen to labor demand _", will it cause unemployment? if so, by how much? . There is an economist in government proposed an alternative solution. Instead of minimum wage law, we can increase our capital stock to maintain previous wage w*. Is that a reasonable solution? if so, by how much increasing in K can achieve that goal