Problem
Equalizing Teacher Salaries. Consider a school that can hire two types of teachers, average and high quality. The vertical intercept of the supply curve for average teachers is $50, and the slope is $1 per average teacher. The vertical intercept of the supply curve for highquality teachers is $120, and the slope is $1 per highquality teacher. (Related to Application 2 on page 710.)
. Initially, the wage for average teachers is $100 and the wage for high-quality teachers is $160. Draw the supply curves and compute the number of average and high-quality teachers.
b. Suppose that unionization levels-up the wage to $130: Both types of teachers earn a wage of $130. Use your supply curves to compute the number of average and high-quality teachers. How has the composition of the workforce changed?
c. Where have the high-quality teachers gone?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.