Question number 3... I have no idea how to solve this one, can you help, specifically with c.) and on

more than $45,000. What will (include a graph in your answer) e) (10 pts) Sketch out how your answers above would change if there were two types of workers instead: high types (LHigh) who produce $60,000 of revenue and low types (LLow) who produce $30,000 of revenue. Additionally suppose that firms can hire as many high types as they want (up to 20,000 of them) as long as they pay them their reserevation wage of $50, 000, while low types follow the labor supply function above (SLow (w) = 2w). I emphasize that a sketch (2-3 paragraphs with some graphs) is sufficient. 3. Suppose workers have identical utility functions U (Y - pd - rL, L) = (Y - pd -TL)1 - Lo where Y is their income (in dollars), p is a transportation cost which grows quadratically with distance d from the city center (in miles), r is the rental rate of land, and L is land (in hectares). Suppose also that workers have the option to live at home with their mom and receive utility level 1. a) (10 pts) Start by assuming that at any location, workers must consume a single hectare of land (i.e., L = 1). Derive their willingness to pay for a hectare of land d miles from the city center: b) (10 pts) How does the share of income residents are willing spend on rent change with distance from the city center? c) (10 pts) Now suppose workers can adjust the amount of land L they consume. What fraction of their budget are they willing to spend on land d miles from the city center? d) (10 pts) How much are they willing to pay per hectare for land d miles from city center? why? e) (10 pts) Contrast your answers to parts a and d? How did the shape of the bid-rent locus change and MacBook Air