Question 2 Let us assume a neoclassical economy with two distinct factors of production; Farmers and Lawyers, denoted by F and L respectively. The production function is Y = 70.75 0.25. The aggregate price level is equal to 7. a) Derive the demand function for Farmers in this economy. b) Assume that the economy has 70 Fariners and 80 Lawyers. If the nominal factor prices can adjust to equilibrate demand and supply, what is the nominal factor price of Farmers? c) Let's assume that half of Lawyers is destroyed. How would real factor prices change? Please first explain intuitively and then mathematically