Suppose the Price of Car Wash Returns to $5 but the Wage

question 206

Essay

Suppose the price of car wash returns to $5 but the wage rate increases to $80 per day.
a) What happens to the marginal product of labor? What happens to the value of marginal product? What happens to Sandy's demand for labor curve?
b) What happens to the number of workers Sandy employs? How does this number compare with the number Sandy employs when the wage rate is $60 per day?

---

Definitions:

Order Paper

A document listing the business or orders of the day for parliamentary bodies, including scheduled discussions, questions, and motions.

Drawer

In the context of negotiable instruments, this term refers to the party that creates or writes a check or a draft, instructing the drawee (usually a bank) to pay the specified amount to a third party (the payee).

Drawee

The party directed by a drafter (such as in the case of a cheque) to pay a certain amount of money to a third party.

Negotiability

Negotiability refers to the feature of certain documents, such as negotiable instruments, that allows them to be transferred or endorsed from one party to another, thereby guaranteeing payment to the holder.