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ng.cengage.com MindTap - Cengage Learning MINDTAP arco Martinez (? Aplia Homewor

ID: 1145009 • Letter: N

Question

ng.cengage.com MindTap - Cengage Learning MINDTAP arco Martinez (? Aplia Homework: Supply, Demand, and Price: Applications Due on Tomorrow at t1.59 PM PST 4. Should all professors be paid the same? The graphs graphs to help you answer the following questions. here show the supply of and demand for assistant professors in history (left) and in biology (right) for a hypothetical university. Use the Market for Assistant History Professors Market for Assistant Biology Professors 180 Demand 162 144 126 108 90 72 120 Demand 98 72 36 36 Supply 12 0 4 8 12 15 20 24 28 32 36 40 QUANTITY (Assistant biology professors) 0 7 14 21 28 35 42 49 58 63 70 QUANTITY (Assistant history professors)

Explanation / Answer

When the wage is 72,000 :

Assistant History Professor: Quantity demanded= 28, quantity supplied = 28. No shortage or surplus occurs.

Assistant Biology Professor:  Quantity demanded= 24, quantity supplied = 8. Shortage occurs

When the wage is 108,000 :

Assistant History Professor: Quantity demanded= 7, quantity supplied = 49. surplus occurs.

Assistant Biology Professor: Quantity demanded= 28, quantity supplied = 16. No shortage or surplus occurs.

With wage of $72,000, there will be: (24+8)/2= 16 assistant biology professors hired by the university ,with wage of $108,000, there will be (49+7)/2= 28 assistant biology professors hired by the university.