Question 1 Suppose the labor supply curve for native Berkeley residents is S B (m) = 211;. There is one rm in Berkeley. This rm acts as a price taker in both the labor and product markets. The product price is p = 2. The rm's production function is f(E) = 6E is? 1. Find the elasticity of labor supply for Berkeley residents. Write down the value of marginal product of employment (VMPE) for the rm. Find equilibrium employment and the wage. P9599 Calculate Berkeley residents' worker surplus, and the rm's producer surplus. 5. A group of workers moves from Palo Alto to Berkeley. These workers are perfect substitutes for Berkeley residents, and their labor supply curve is 813(10): 2 + aw, where 0 S o: S 1. Find the new total labor supply curve in Berkeley