Suppose there exists 2 types of job:Teaching related (T) and Medicine related(M). In the economy there are two types of worker based on their job preference: namely Academicians (A) and Doctors (D). The minimum wage the A workers will require to join a T job is $35/hour and the same for M is $50/hour. The minimum wage the D workers will require to join a T job is $60/hour and the same for M is $35/hour. None of the worker will take up any job offering wages less than $35 per hour. There are 150 workers of each category.

i. In words explain the supply curve of workers in each of the sectors following the discussion in class. Make sure you indicate every segment of the supply curve of workers in each sector for full credit.

ii. Supposethe demand for labour curves intersect the labour supply curves such that there are 250 workers in T sector and 150 workers in M sector.

- Calculate the economic rent if any in this economy earned by workers?

- Which workers earn it?

- Suppose M jobs require a special training costlier than which T jobs do not? Explain what would happen to the minimum wage each of the workers will be demanding from the T sector?