21. Shouldall professors be paid the same? The graphs here show the supply of an
ID: 1149903 • Letter: 2
Question
21. Shouldall professors be paid the same? The graphs here show the supply of and demand for assistant professors in history (left) and in biology (right) for a hypothetical university. Use the graphs to help you answer the following questions Market for Assistant History Professors Market for Assistant Biology Professors 80 Demand 120 Demand 72 32 1 Supply 24 Supply 0 7 14 21 28 35 42 49 63 70 QUANTITY (Assistant history professors) 04 12 2024283240 QUANTITY (Assistant biology proflessors) The equilbrium wage of an assistant professor in history is . and the equilbrium quantity is assistant professors in history. On the other hand, the equilibrium wage of an assistant professor in biology is in biology and the equilibrium quantity is assistant professors in history, On and the equilibrium quantity is assistant professors Suppose the university sets the same wage for all assistant professors in each department. Fill in the following table with the quantity demanded and supplied for each type of assistant professor when the university sets the wage to $48,000 and $72,000, respectively. Assistant History Professors Assistant Biology Professors (Dollars) Shortage or Shortage or 48,000 72,000 In summary, if the university sets a wage of $48,000 for all assistant professors in every department, which is equivalent to a price ceiling for biology professors, there will beassistant biology professors hired by the university than there wouild be if the university paid assistant biology professors their equilibrium wage. Similarly, if the university sets a wage of $72,000 for all assistant professors in every department, which is equivalent to a price floor for history professors, there will beassistant history professors hired by the unversity than there would be if the university paid assistant history professors their equilibrium wage.Explanation / Answer
the equilibirium wage of an assistant professor in history is $48,000 and the equilibirium quantity is 28.assistant professors in histoty. on the other hand,the equilibirium wage of an assistant professor in biology is $72,000 and the equilibirium quantity is 16.assistant professors in biology.
for assistant history professor, when
a) wage= $48,000
quantity demanded= 28
quantity supplied = 28
shortage or surplus=0.
b) wage= $72,000
quantity demanded= 7
quantity supplied = 49
surplus=49-7= 42
for assistant biology professor, when
a) wage= $48,000
quantity demanded= 24
quantity supplied = 8
shortage= 24-8= 16
b) wage= $72,000
quantity demanded= 16
quantity supplied = 16
surplus or shortage= 0.
in summary, if the university sets a wage of $48,000 for all assistant professors in every department, which is equivalent to a price ceiling for biology professors, there will be 8 assistant biology professors hired by the university than there would be if the university paid assistant biology professors their equilibirium wage. similarly, if the university sets a wage of $72,000 for all assistant professors in every department, which is equivalent to a aprice floor for history professors, there will be 7 assistant history professors hired by the university than there would be if the university paid assistant histoty professors their equilibirium wage.
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