Analysts estimate that the expansion of the capacity of the criminal courts in a city would require about 7,200 additional hours of juror time. The average wage rate in the county is $15/hour. A recent survey by the jury commissioner, however, found that the average wage for those who actually serve on juries under the present system, who are also currently employed, is only $9/hour. The survey also found that about one-third of those who actually serve on juries under the existing system do not hold jobs-for example, they are homemakers, retirees, or unemployed.
a. What shadow price should the analysts use for an hour of jury time?
b. About a quarter of jurors do not receive wages from their employers while on jury duty. How does this affect your choice of the shadow price?