The equilibrium wage of an assistant professor in music is 5 and the equilibrium quantity is assistant professors in music. On the other hand, the equilibrium wage of an assistant professor in biology is S and the equilibrium quantity is assistant professors in biology. 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 $72,000 and $108,000, respectively. University Assistant Music Professors Assistant Biology Professors Wage (Dollars) Quantity Quantity Demanded Shortage or Surplus Quantity Demanded Quantity Supplied Shortage or Surplus Supplied 72,000 108,000 In summary, if the university sets a wage of $72,000 for all assistant professors in every department, which is equivalent to a price ceiling for biology professors, there will be assistant biology professors hired by the university than there would be if the university paid assistant biology professors their equilibrium wage. Similarly, if the university sets a wage of $108,000 for all assistant professors in every department, which is equivalent to a price floor for music professors, there will be assistant music professors hired by the university than there would be if the university paid assistant music professors their equilibrium wage
The equilibrium wage of an assistant professor in music is 5 and the equilibrium quantity is assistant professors in music. On the other hand, the equilibrium wage of an assistant professor in biology is S and the equilibrium quantity is assistant professors in biology. 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 $72,000 and $108,000, respectively. University Assistant Music Professors Assistant Biology Professors Wage (Dollars) Quantity Quantity Demanded Shortage or Surplus Quantity Demanded Quantity Supplied Shortage or Surplus Supplied 72,000 108,000 In summary, if the university sets a wage of $72,000 for all assistant professors in every department, which is equivalent to a price ceiling for biology professors, there will be assistant biology professors hired by the university than there would be if the university paid assistant biology professors their equilibrium wage. Similarly, if the university sets a wage of $108,000 for all assistant professors in every department, which is equivalent to a price floor for music professors, there will be assistant music professors hired by the university than there would be if the university paid assistant music professors their equilibrium wage
Chapter11: Resource Market
Section: Chapter Questions
Problem 5.8P
Related questions
Question
M12
Transcribed Image Text:20. Should all professors be paid the same?
The graphs here show the supply of and demand for assistant professors in music (left) and in biology (right) for a hypothetical university. Use the
graphs to help you answer the following questions.
Market for Assistant Music Professors
Market for Assistant Biology Professors
120
Demand
100
Demand
100
142
3
144
84
126
72
108
60
30
48
72
54
Supply
36
Supply
10
0
05 10 15 20 25 30 35 40 45 50
QUANTITY (Assistant music professors)
0412 14 20 24 28 32 36 40
QUANTITY (Assistant biology professors)
The equilibrium wage of an assistant professor in music is S
, and the equilibrium quantity is
assistant professors in music. On
and the equilibrium quantity is
assistant
the other hand, the equilibrium wage of an assistant professor in biology is S
professors in biology.
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 $72,000 and $108,000, respectively.
University
Assistant Music Professors
Wage.
(Dollars)
Quantity
Quantity
Supplied
Shortage or
Surplus
Quantity
Demanded
Assistant Biology Professors
Quantity
Supplied
Demanded
Shortage or
Surplus
72,000
106,000
In summary, if the university sets a wage of $72,000 for all assistant professors in every department, which is equivalent to a price ceiling for biology
professors, there will be
assistant biology professors hired by the university than there would be if the university paid assistant
biology professors their equilibrium wage. Similarly, if the university sets a wage of $108,000 for all assistant professors in every department, which is
equivalent to a price floor for music professors, there will be
assistant music professors hired by the university than there would
be if the university paid assistant music professors their equilibrium wage.
x
24
12
E
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