Question 4: Intervention in Labor Markets The diagram below depicts the market for labor in a small town. You can assume that labor markets are perfectly competitive, and that there is no difference in the level of skill of a worker, nor do differentjobs require different skill sets (i.e. workers can easily move from job to job). a. Fill in the diagram by adding: i. Labels to indicate the labor supply and labor demand curves ii. Label the equilibrium that occurs at 1,000 units of labor and $12lh Real Wage Number of Workers b. The state government recently updated its minimum wage regulation and set it at $1 Br'h. On the diagram from part (a), depict the effects of the new minimum wage, and explain what happens in a few words below. c. We are now back to the equilibrium at (a), with no minimum wage. The barbers in town, though, have just recently formed a union. For each of the following, explain your answer with words and diagrams. i. What happens to the equilibrium real wage and number of employed barbers'? ii. What happens to the equilibrium real wage in the rest of the town's labor market (Le. for non-barberjobs)