Question 2 Consider part (b) of the previous question in more detail. For the unskilled labor market, L}; = — XXXXXXXXXXand L3 = 170 — 1000. For the skilled labor market, L: = — XXXXXXXXXXI and...

Question 2 Consider part (b) of the previous question in more detail. For the unskilled labor market, L}; = —10 + 2000 and L3 = 170 — 1000. For the skilled labor market, L: = —40 +200.I and L3 = 235 — 50:.a. Calculate the equilibrium wage and employment in each sector. b. Suppose labor demand changes in each market. For the unskilled labor market, LE, 2 140 — 100:. For the skilled labor market, L? = 285 — 5w. Calculate the new equilibrium wage and employment in each sector. c. Calculate the percentage increase in wage inequality using the 80:20 ratio assuming that theskilled market represents earnings at the 80th percentile and low-skilled market representsearnings at the 20th percentile. Question 3 The following table provides ACTUAL income limits for each household percentile for 1980 and2010 (in 2013 US$): Black Households White (non-Hispanic) HouseholdsPercentile 1980 2010 Percentile 1980 201020 $11,278 $12,500 20 $22,564 $24,14640 $21,990 $28,172 40 $40,807 $45,25460 $36,336 $43,500 60 $61 ,217 $72,66880 $59,441 $74,788 80 $88,149 $114,438 a. TlWhat is the 80:20 ratio for black households in 1980? In 2010?b. Based on the 60:40 ratios, which household was the most unequal?c. How has the 80:20 ratio changed for white households over time?