Consider a labour market where labour demand and supply are given by w = 240−2LD and w = 30+4LS , respectively, the competitive market equilibrium quantity of labour is 35, the wage is 170, consumer surplus is 1225 and producer surplus is 2450. 1.If the owners collude, calculate the new equilibrium quantity of labour and wage. 2.Continue with the previous part. Calculate the new consumer surplus and producer surplus. 3 .Continue with the previous part. Briefly explain if, compared to the competitive market equilibrium, the owners and/or players are better off and if the overall wellbeing of the league has increased or decreased.

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