Question Three Consider the Lewis Model of the Modern Sector Growth in a two-sector model below: FIGURE 3.1 The Lewis Model of Modern-Sector Growth in a Two-Sector Surplus-Labor Economy TPM= A(LM, KM. IM) TPA=f(LA. KATA) TPA TPA (KA) Total product (manufactures) TPA = WA LA LA QIA D3 APLA MPLA Average (marginal) products Real wage (= MPLM) WM -S WA `D3 (KM3) WAL `D2 (K M2) MPLA DI (KMI) = MPLM APLA L3 LA Surplus labor Quantity of labor (QIM) (thousands) Quantity of labor (QLA) (millions) (a) Modern (industrial) sector (b) Traditional (agricultural) sector Carefully, study the properly labelled diagram(s) above and concisely provide an explanation on the following observations: i. Why the labour supply curve (SL) is horizontal at (WM) when the number of workers hired in the manufacturing sector is less than the surplus labour in the agricultural sector? ii. How the profits in the manufacturing sector are being maximized and distributed between the employers and the workers iii. Why the development of the manufacturing sector creates a win-win-win situation for the economy, employers, and workers; iv . How the employment in the manufacturing sector expands if employers re-invest all their profits into labour-neutral capital stock