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Suppose that labour supply of all individuals is given by h^(w) = 0.5w (and their reservation wage is zero). There are currenly 100 workers in

Suppose that labour supply of all individuals is given by h^(w) = 0.5w (and their reservation wage is zero). There are currenly 100 workers in the economy that are high-skilled and there are 100 workers who are unskilled. Labour markets are competitive and firms sell their output for $10 per unit. Find the change in the equilibrium wage for high-skilled and unskilled workers when 100 additional unskilled workers enter the economy when there are 10 firms each with a production technology of:

f(ls,lu)=2 (ls)^0.5 + (lu)^0.5

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