There are two economies. Economy A is dominated by the self-driving cars, which has the following production function: The production function of the self-driving car industry is: Y =K1/2(min{2H,7L})1/2 ,where K represents capital, H represents high-skilled labor, and L represents low- skilled labor.
Economy B is dominated by the agriculture industry, which has the following pro- duction function: Y =K1/3(4H+3L)2/3, where as before K represents capital, H represents high-skilled labor, and L repre- sents low-skilled labor. Suppose an immigration policy in each economy increased the intake of low-skilled immigrants rapidly. In the short run, how would it affect the wage of high-skilled workers in each economy? √