Question 4 (Total 10 marks)

Suppose there are two types of worker (Type a and Type B).

1. Assume type a and type B workers are substitutes. Explain what would happen to the
2. demand of type a worker if the wage for type B workers is lower.
3. Assume type a and type B workers are complements. Explain what would happen to the
4. demand of type a worker if the wage for type B workers is lower.