Problem
Consider the following supply and demand equations for berry pickers. Demand: W = 22-0.4L; supply: W = 10+0.2L.
(a) Plot these functions and calculate the equilibrium wage and employment level.
(b) Illustrate in the diagram the areas defining transfer earnings and rent.
(c) Compute the transfer earnings and rent components of the total wage bill.
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.