Question 4: Consider the simple Harris-Todaro Model of Rural-Urban migration. Wage is fixed at 100 rupees in a major city in India. There are 50,000 jobs in the formal sector in this city. Assume that workers are rational decision makers. What is the total urban force at each of the rural wage rates in the table below? Calculate total labor force and informal employment in the urban sector. (20 points)

a. WAL Probability Total Urban Informal Total Urban Informal in of getting labor force when employment labor force when employment Rupees an urban Lm = 50,000 Lm = 60,000 job 10 20 30 40 50 60 70 80 90 100