The table below provides the production information for Stacey's Soda Shack. Stacey hires workers in a...

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The table below provides the production information for Stacey's Soda Shack. Stacey hires workers in a competitive labor market and can hire workers to help make and bottle her soda for $20 a day. She sells her soda for $1 each. 1. Answer: Workers 0 1 2 3 4 Answer: 5 6 (b) Given the above production information, address each of the following. i. Draw a graph showing Stacey's Soda Shack's demand and supply for workers. ii. Total Output 0 50 90 120 140 150 159 Use your graph in part (i) above to explain how Stacey will determine how many workers she will hire in order to maximize her profit and use her labor force. State how many workers Stacey will hire. Assume that Stacey's sodas are a normal good. If consumer income increases, how will Stacey's hiring decision change? Specifically, use appropriate graphs to explain how: i. The income increase will affect the quantity of sodas sold in the market. ii. Stacey's demand for workers will change as a result of this consumer income increase. iii. The wage rate paid to Stacey's employees will change. iv. The number of workers Stacey actually hires will change. The table below provides the production information for Stacey's Soda Shack. Stacey hires workers in a competitive labor market and can hire workers to help make and bottle her soda for $20 a day. She sells her soda for $1 each. 1. Answer: Workers 0 1 2 3 4 Answer: 5 6 (b) Given the above production information, address each of the following. i. Draw a graph showing Stacey's Soda Shack's demand and supply for workers. ii. Total Output 0 50 90 120 140 150 159 Use your graph in part (i) above to explain how Stacey will determine how many workers she will hire in order to maximize her profit and use her labor force. State how many workers Stacey will hire. Assume that Stacey's sodas are a normal good. If consumer income increases, how will Stacey's hiring decision change? Specifically, use appropriate graphs to explain how: i. The income increase will affect the quantity of sodas sold in the market. ii. Stacey's demand for workers will change as a result of this consumer income increase. iii. The wage rate paid to Stacey's employees will change. iv. The number of workers Stacey actually hires will change.

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