Suppose there is a firm who hires workers as part oftheir production. The firm makes use of two input: labour [Li and capital {K}. Their marginal product of labour is given by: MI'L = (100 10L + KL] Assume that we are in the short-run {capital is fixed}. Also assume that firm currently owns 5 units of capital. The price of the output that they are producing is currently $1. 9. Describe; in words, the relationship here between capital and the productivity of labour. How does this mean the quantity of capital is likely to affect labour demand? Now suppose that households in this iocal economy work in the labour market. They supply their labour according to: |.5=w10 1i). Draw the labour supply curve and the Marginal Revenue Product of Labour [MRPL] curve. Also label the labour market equilibrium {w* 31 L*}. Show your work for how w* and L' are found. Be sure to label then xintercepts and yintercepts for both curves. Have the quantity of labour EL) on the xaxis and the wage rate on the yaxis. Now suppose that the firm is able to increase its units ofcapital from 5 units to 7' units of capital. 11. What happens to labour demand? Show another figure with the new labour demand curve and the same supply curve. Be sure to label then xintercept and y-intercept of this new demand curve. Draw the quantity of labour [L] on the xaxis and the wage rate on the y-axis. What is the new equilibrium wage rate and the number of units of labour employed? Show your work