(Solved): 20. Should all professors be paid the same? The graphs here show the supply of and demand for assis ...

20. Should all professors be paid the same? The graphs here show the supply of and demand for assistant professors in music (left) and in biology (right) for a hypothetical university. Use the graphs to help you answer the following questions. Market for Assistant Music Professors Market for Assistant Biology Professors ? 120 Demand 100 Demand 100 162 56 126 108 X 72 54 36 Supply SALARY (Thousands of dollars) 72 (0 45 36 24 12 E Supply 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Assistant music professors) SALARY (Thousands of dollars) 393320*= 10 0 D 4 8 12 16 20 24 28 32 36 40 QUANTITY (Assistant biology professors) P The equilibrium wage of an assistant professor in music is $ , and the equilibrium quantity is assistant professors in music. On assistant the other hand, the equilibrium wage of an assistant professor in biology is S , and the equilibrium quantity is professors in biology. Suppose the university sets the same wage for all assistant professors in each department. Fill in the following table with the quantity demanded and supplied for each type of assistant professor when the university sets the wage to $72,000 and $108,000, respectively. University Wage (Dollars) Assistant Music Professors Quantity Quantity Quantity Shortage or Surplus Assistant Biology Professors Quantity Supplied Shortage or Surplus Demanded Supplied Demanded 72,000 108,000 In summary, if the university sets a wage of $72,000 for all assistant professors in every department, which is equivalent to a price ceiling for biology professors, there will be assistant biology professors hired by the university than there would be if the university paid assistant biology professors their equilibrium wage. Similarly, if the university sets a wage of $108,000 for all assistant professors in every department, which is equivalent to a price floor for music professors, there will be assistant music professors hired by the university than there would be if the university paid assistant music professors their equilibrium wage.