Use a model of decision making under scarcity to show the allocation that maximises thw land lord's economic rent when she can coerce workers. Label all relevant axes, points and curves on your model.

Use a separate model of decision making under scarcity to show the set of Pareto efficient allocations result from worker being able to bargain with the land lord, but with the lord still being able to make a take-it-or-leave-it offer. Label all relevant axes, points and curves on your model. (5 marks)