Problem
The supply curve for agricultural labour is given by W = 6 + 0.1L, where W is the wage (price per unit) and L the quantity traded. Employers are willing to pay a wage of $12 to all workers who are willing to work at that wage; hence the demand curve is W = 12.
(a) Illustrate the market equilibrium, and compute the equilibrium wage (price) and quantity of labour employed.
(b) Compute the supplier surplus at this equilibrium.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.