Surma is a dentist who works at East West Dentist and she plays guitar in her free time. Suppose the hourly fee that she can charge increases from BDT 900 to BDT 1000. She decides to increase working as a dentist from 5 hours to 9 hours. When the hourly fee she charges increases further from BDT 1000 to BDT 1200, she decides to keep her working hours unchanged at 9 hours. Finally, when her fee increases from BDT 1200 to BDT 1400, she decides to decrease her working hours from 9 to 7 hours. c) Sketch Surma's individual labor supply curve using the numbers given above. d) Explain Surma's decisions about work and leisure. e) Suppose a minimum wage is set for dentists. Sketch the labour market and state the effects of the minimum wage.

Surma is a dentist who works at East West Dentist and she plays guitar in her free time. Suppose the hourly fee that she can charge increases from BDT 900 to BDT 1000. She decides to increase working as a dentist from 5 hours to 9 hours. When the hourly fee she charges increases further from BDT 1000 to BDT 1200, she decides to keep her working hours unchanged at 9 hours. Finally, when her fee increases from BDT 1200 to BDT 1400, she decides to decrease her working hours from 9 to 7 hours. c) Sketch Surma's individual labor supply curve using the numbers given above. d) Explain Surma's decisions about work and leisure. e) Suppose a minimum wage is set for dentists. Sketch the labour market and state the effects of the minimum wage.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.5IP

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