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Applied Calculus for the Manageria...

10th Edition
Soo T. Tan
ISBN: 9781285464640
BuyFindarrow_forward

Applied Calculus for the Manageria...

10th Edition
Soo T. Tan
ISBN: 9781285464640
Textbook Problem

THE NARROWING Gender Gap Since the founding of the Equal Employment Opportunity Commission and the passage of equal-pay laws, the gulf between men’s and women’s earnings has continued to close gradually. At the beginning of 1990 (t = 0), women’s wages were 68% of men’s wages, and by the beginning of 2000 (t = 10), women’s wages were projected to be 80% of men’s wages. If this gap between women’s and men’s wages continued to narrow linearly, then women’s wages were what percentage of men’s wages at the beginning of 2008?

Source: Journal of Economic Perspectives.

To determine

To find: The women’s wages when time t=18 in 2008.

Explanation

Given:

Women’s wages were 68% of men’s wages when time t=0 in 1990.

Women’s wages were 80% of men’s wages when time t=10 in 2000.

Formula used:

The formula used to calculate the equation of line passes through the points (x1,y1) and (x2,y2) and has slope m is,

m=y2y1x2x1 (1)

Calculation:

Assume the point A(x1,y1)=(0,68) and B(x2,y2)=(10,80) .

Substitute 0 for x1 , 10 for x2 , 68 for y1 and 80 for y2 in equation (1)

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