Suppose that the government of Drayphil Republic tried to mandate a real wage above the equilibrium real wage. Assume that factor markets are otherwise free and competitive and that the usual Cobb-Douglas production function still holds. That is, Y = AK^0.3L^0.7.

a)Sketch a diagram to depict the situation in the market for labor. Make sure to denote the representative equilibrium real wage, equilibrium quantity of labor, the government-imposed price floor, and the actual amount of labor used.

b)Sketch a diagram to depict the situation in the market for capital. Make sure to denote the representative equilibrium real rental costs of capital and the actual amount of capital used, before and after the minimum wage is imposed.

c)Explain why the higher real wage would fail to increase the share of labor income in national income. Feel free to refer to your diagrams from parts a and b to aid in your explanation.