Question Three. 1. Look at the diagram below. Consider the scenario where citizens have almost all the bargaining power. What will be the equilibrium outcome in this scenario (draw it on the graph)? (4) SlopeaW'MS 100 be unit cost lm's 'shutdown' condition tnthisregiontnerrnsmudown 'l Slope of citizens' indifference curves - MRS In this region citizens leave town Quality of the environment. E In I ................................... . citizen; [ESENIIIIOI'I ' indifference curve: 'leeve town conditinn' w. Wages 2. What are some factors that could give citizen's more bargaining power? Why would it not be perfect (in other words why would they not have all the bargaining power)? (4) 3. Bonus. What is the economic logic for why w" stays fixed? (Not the mathematical reason]. (2}