Consider the situation facing Tessa, the owner of Tessa's Techs in Problem 1.
a. Draw Tessa's demand curve for labor. Then, draw the supply curve for labor that Tessa faces.
b. On your graph, indicate the profit maximizing quantity of labor for Tessa to hire.
c. Suppose that Microsoft releases a particularly bug-prone version of Windows that causes the demand for service calls to increase. The increase in demand for service calls drives up the market price of a service call from $6 to $10. Draw Tessa's new demand for labor, and determine the number of workers Tessa should hire.
d. Does the change you illustrated in (c) help explain why the demand for labor is called a derived demand?