From the original demand function in Problem 6, how many cashiers would have jobs if the wage paid were $8.00 per hour? Discuss the implications of an $8 wage in the market for cashiers.

Problem 6

The following table gives the demand and supply for cashiers in retail stores.

a. Plot the supply and demand curves.

b. What are the equilibrium wage and employment levels in this market?

c. Suppose the number of cashiers demanded increases by 30 at every wage rate. Plot the new demand curve.
What are the equilibrium wage and employment level now?

Wage Rate ($) 3.00 4.00 5.00 6.00 7.00 8.00 9.00 Number of Cashiers Demanded 200 180 170 150 130 110 80 Number of Cashiers Supplied 70 100 120 150 160 175 190