After you have studied Reading Between the Lines (pp. 196–197) answer the following questions.

a. If a wave of natural disasters put paramedics in the news and a large number of people decide to try to get jobs as paramedics, how does

(i) The marginal utility of the services of a paramedic change?
(ii) Consumer surplus in the market for the services of paramedics change?

b. If television advertising revenues during hockey games double, how does (i) The marginal utility of the services of a hockey player change?
(ii) Consumer surplus in the market for the services of hockey players change?

Transcribed Image Text:

READING BETWEEN THE LINES A Paradox of Value: Paramedics and Hockey Players Salaries, Strong Recruitment Ease Area Paramedic Shortage The Washington Post April 4, 2008 To curb a critical shortage, fire departments across the Washington region have pursued para- medics like star athletes in recent years, enticing them with signing bonuses, handsome salaries and the promise of fast-track career paths. Montgomery County hired a marketing expert and launched a national recruiting drive, reaching out in particular to women and minorities. Fairfax County offered top starting salaries, now totaling about $57,000-as much as 50 percent higher than some other local jurisdictions, though Fairfax paramedics generally work longer hours....