Suppose the supply curve of physicists is given by w = 10 + SE, while the demand curve is given by w = 50 3E. a) Calculate the equilibrium wage and employment level. b) Calculate the labour demand elasticity at the equilibrium in (a) 0) Suppose now that the demand for physicists increases to w = 70 3E. What is the new equilibrium wage and employment level? d) Assume the market is subject to cobwebs. Draw a graph to illustrate the wage and employment level adjusting to the demand shock in (b). Calculate the wage and employment level in each round up to round 6. (Round 0 is the old equilibrium.) [10 marks]